Bitcoin (BTC) slipped to around $60,000 earlier today before rebounding toward $65,000, following one of the sharpest daily sell-offs in its history.<\/p>\n
The move has split traders between those calling the rebound a temporary technical reaction and others pointing to extreme fear as a setup for a recovery toward $70,000.<\/p>\n
On February 6, Santiment noted<\/a> that social media mentions calling for Bitcoin to go \u201clower\u201d or \u201cbelow\u201d shot up after the drop to $60,000, a pattern the analytics firm said often appears near short-term price rebounds.<\/p>\n The asset did indeed bounce back to about $65,000, with the uptick coming after what The Kobeissi Letter described<\/a> as BTC\u2019s first-ever daily drop of more than $10,000, alongside claims that a large leveraged position had been liquidated.<\/p>\n \u201cIs this nothing but a dead cat bounce?\u201d Santiment asked, while positing that enough retail may have been shaken out to justify a quick rally back up to the $70,000s.<\/p>\n The sell-off capped weeks of heavy downside pressure, as CryptoPotato previously reported, with Bitcoin wiping<\/a> out gains seen after Donald Trump\u2019s re-election and dragging most major altcoins lower. XRP fell 13% on the day, while Ethereum, Solana, and BNB also posted steep losses.<\/p>\n Meanwhile, on-chain and derivatives data are painting a mixed picture beneath the rebound. According to DeFi commentator Marvellous, \u201csmart money\u201d has taken<\/a> a net short position, while whales and public figures are adopting long positions. The market watcher argued the move looked more like a mechanical response after $2.2 billion in long liquidations than renewed conviction, noting that open interest remained elevated and funding rates had stayed flat.<\/p>\n Elsewhere, trader Sykodelic highlighted<\/a> a lopsided liquidation map, claiming the market had cleared most long positions, leaving roughly $29 billion in shorts versus about $100 million in longs over a one-year view.<\/p>\n Bitcoin was trading around the $65,000 level at the time of writing, down nearly 9% in the last 24 hours and more than 21% over the past seven days. Across the previous month, the losses stand close to 30%, pushing BTC about 48% below its peak from October 2025, when it surpassed the $126,000 mark.<\/p>\n Analysts from CryptoQuant have said that the current downturn is developing<\/a> faster than the 2022 bear market, with their data showing the OG cryptocurrency fell 23% within 83 days of losing its 365-day moving average, compared with a 6% decline over the same period in early 2022.<\/p>\n Santiment added that sentiment toward both Bitcoin and Ethereum (ETH) had turned \u201cextremely bearish,\u201d a condition that can coincide with short-lived relief rallies when retail fear stays elevated.<\/p>\n For now, traders remain divided. Some see the concentration of short positions and fearful sentiment as fuel for a move back toward $70,000, while others have warned that without a collapse in open interest and prolonged sideways trading, the recent bounce may only be the precursor to another test of lower levels.<\/p>\n The post Santiment: Crowd Fear Triggers Bitcoin Bounce, $70K Rally in Focus<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin (BTC) slipped to around $60,000 earlier today before rebounding toward $65,000, following one of the sharpest daily sell-offs in its history. The move has split traders between those calling the rebound a temporary technical reaction and others pointing to extreme fear as a setup for a recovery toward $70,000. Fear Spikes as Bitcoin Rebounds […]<\/p>\n","protected":false},"author":0,"featured_media":133006,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-133005","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/133005"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=133005"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/133005\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/133006"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=133005"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=133005"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=133005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Price Action Shows Heavy Damage Despite Short-Term Bounce<\/h2>\n