Bitcoin on the Edge: Market in Extreme Fear, but Aggressive Buying Has Begun

Sharp Increase in BTC Purchases

Immediately after the US market opened, the volume of market buy orders for Bitcoin on exchanges reached $121.6 million.

This indicates aggressive market demand, where participants are willing to buy at the current price without waiting for a pullback.

Extreme Fear in the Market

According to Glassnode, the market is in a state of extreme fear.

A strong asymmetry is observed:

• skewed towards put options,

• high trading volume,

• increased open interest.

Such conditions have historically often appeared near the final stages of a bear market.

Rare STH-MVRV Signal

Today, BTC returned to the STH-MVRV channel after trading below the -1 standard deviation level for nearly a month.

Historically, the price rarely falls below this zone — usually only during severe market oversold conditions.

A conflicting picture is emerging:

• the market is in panic,

• most participants are in loss,

• but aggressive buying and rare on-chain oversold signals are appearing.

Under these conditions, two scenarios are possible:

1️⃣ Short squeeze — sharp liquidation of shorts and a quick rebound.

2️⃣ Final phase of pressure if demand cannot stabilize.

The coming days will show whether this marks a reversal or is just a temporary relief within the bear trend.