Bitcoin relives 2018 style panic as warning says a break below $60,000 could lead to $40,000
Bitcoin relives 2018 style panic as warning says a break below $60,000 could lead to $40,000
Bitcoin (BTC) has entered a phase of extreme fear as investment sentiment hit an all-time low. However, optimism is spreading that the $60,000 level could mark the true bottom of this downturn, as a series of indicators matching historical bottom signals have been detected.
According to cryptocurrency-focused media outlet Cointelegraph, the Bitcoin Fear and Greed Index fell to a record low of 7 on February 10 (local time), plunging the market into a state of extreme fear. The report noted that while Bitcoin’s price rebounded above $71,000 on Monday, investor sentiment remains at one of its worst levels, reminiscent of the 2018 bear market and the March 2020 COVID-19 crisis. Michaël van de Poppe, founder of MN Capital, emphasized that Bitcoin’s daily Relative Strength Index dropping to 15 represents an unusually oversold condition, adding that such indicators have historically preceded major market turning points.
Liquidation data also leans more toward the possibility of a rebound than further decline. Data from cryptocurrency analytics platform CoinGlass shows that roughly $5.45 billion worth of short-position liquidations are stacked above the current price range. This is more than double the approximately $2.4 billion in liquidations expected if the price retests $60,000. A modest price rebound could trigger a “short squeeze,” forcing short sellers to cover and potentially acting as powerful fuel for a sharp vertical rise in Bitcoin’s price.
Nevertheless, structural weakness in the market persists, keeping concerns about further downside firmly in place. On-chain analytics firm CryptoQuant assesses that Bitcoin remains well below its 50-day moving average of $87,000 and its 200-day moving average of $102,000, placing it in a typical re-pricing phase. CryptoQuant’s Price Z-Score also remains in negative territory at -1.6, suggesting that rather than an immediate V-shaped rebound, a prolonged bottoming process is more likely. In particular, futures trading volume continues to overwhelm spot volume, underscoring the urgent need for genuine spot buying demand to stabilize prices.
Some technical analysts argue that the possibility of a deeper correction should not be ruled out based on historical patterns. Cryptocurrency analyst Jelle noted that bottoms in past bear markets were typically formed below the 61.8% Fibonacci retracement level, cautioning that in this cycle the price could slip to around $57,000, or in a worst-case scenario, as low as $42,000. With investor profitability compressed and capital outflows continuing, a defensive stance prevails, warranting heightened caution amid expected volatility.
Bitcoin is currently defending the $60,000 support level, locked in a fierce battle where fear and hope intersect. While extreme oversold indicators and large volumes of pending short liquidations provide strong grounds for a rebound, a futures-driven market structure and broader macroeconomic weakness continue to exert downward pressure. Investors are closely watching whether Bitcoin can decisively break above the $72,000 resistance level and fully reverse its downtrend.
*Disclaimer: This article is provided for investment reference purposes only, and no responsibility is assumed for any investment losses based on it. The content should be interpreted solely as informational.*
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