Bitcoin climbs back above $66,000 after testing $60,000 support

Traders Union
All News
Crypto News
Bitcoin volatility surges

Highlights

Bitcoin rebounded to around $66,200 after briefly dropping to $60,033, following its steepest one-day decline since November 2022.
Roughly $700 million in leveraged crypto positions were liquidated, underscoring how forced selling continues to drive market volatility.
The Crypto Fear and Greed Index fell to 9, signaling extreme fear and sentiment levels last seen during the 2020 COVID crash and the 2018–2019 bear market.

The move came after one of Bitcoin’s most turbulent weeks in recent years, underscoring how quickly sentiment can swing in a market still heavily influenced by leverage, CoinDesk repors.

Bitcoin slides to $60,000 before rebounding

According to market data, Bitcoin fell 4.8% to around $60,033 late in the U.S. trading session on Coinbase before rebounding sharply, climbing to highs near $65,926 in Asia. The drop followed a 13% decline on Thursday, marking Bitcoin’s steepest one-day fall since November 2022, when the collapse of Sam Bankman-Fried’s FTX exchange triggered a marketwide panic.

At the time of writing, Bitcoin was trading at around $66,200, up 5.45% over the past 24 hours.

BTC price performance. Source: TradingView

The sell-off intensified a broader correction that has dragged Bitcoin more than 50% below its October highs, amid turbulence in global markets and a retreat from speculative assets. Liquidations surged again as prices fell, clearing out leveraged positions that had accumulated during the previous rally. According to CoinGlass, roughly $700 million in crypto bets were wiped out over a four-hour window, including about $530 million in long positions and $170 million in shorts, suggesting traders were caught on both sides of the violent move.

Panic signals and fragile sentiment

The rebound appeared to draw in spot buyers, with $60,000 acting as a psychological support level that traders have been monitoring for weeks. Damien Loh, chief investment officer at Ericsenz Capital, said the bounce points to “strong support” around that level, while cautioning that sentiment remains fragile given the broader market backdrop.

That fragility is reflected in sentiment indicators. The Crypto Fear and Greed Index has fallen to 9, a level classified as “extreme fear.” Such readings signal panic conditions, marked by liquidations and a rapid shift into risk-off mode. Comparable levels were last seen during the March 2020 COVID-19 market crash and in 2018–2019, during the depths of the previous crypto bear cycle.

Altcoins mirrored Bitcoin’s whipsaw. Solana fell as much as 14% at one point before erasing those losses within hours, highlighting how quickly risk appetite is flipping as liquidity thins. Bitcoin’s weakness has also spilled into crypto-linked balance sheets: Strategy, led by Michael Saylor, reported a $12.4 billion fourth-quarter net loss driven by mark-to-market declines in its Bitcoin holdings.

Why this matters

Bitcoin’s sharp rebound does little to ease concerns that the market remains driven by leverage rather than confidence. With fear at extreme levels and volatility elevated, traders and institutions alike are bracing for further instability that could spill into broader financial markets.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.