Will Bitcoin Hold $60,000 Amid Renewed Liquidation Fears?

▲ Bitcoin (BTC), decline, crypto fear / ChatGPT-generated image ©

Bitcoin has fallen to the $65,000 level, facing renewed downward pressure as extreme market-wide fear and a technically weak structure appear to be working in tandem, according to analysts.

As of February 12 (local time), cryptocurrency data site CoinMarketCap reported that Bitcoin (BTC) was trading at $65,540.87, down 3.83% over the past 24 hours. During the same period, the total cryptocurrency market capitalization declined by 2.73%. The Fear & Greed Index stood at 8, remaining in the “Extreme Fear” zone. In the absence of clear macroeconomic tailwinds or coin-specific catalysts, risk-off sentiment is interpreted as having fueled selling pressure.

Price action is also technically burdensome. Bitcoin faced resistance at the 78.6% Fibonacci retracement level of $68,160 and retreated, trading below the 7-day simple moving average (SMA) of $68,387. The 14-day Relative Strength Index (RSI) stands at 30.22, nearing oversold territory. However, with trading volume down 5.91%, the movement signals a gradual weakening trend rather than panic-driven capitulation.

The market structure still favors the downside. Analysts suggest that for a short-term reversal, Bitcoin must break through the $68,160–$68,400 resistance zone accompanied by increased trading volume. Conversely, if it fails to defend the $60,074 swing low, the downward trend could be reaffirmed, increasing the likelihood of further correction.

The short-term scenario is clear. If Bitcoin holds above $60,074, it may form a range between $60,074 and $68,160. However, if this support level collapses, additional liquidations combined with heightened fear could trigger another sharp decline.

Ultimately, the current drop appears to be the result of a broader weak market trend coupled with a failure to overcome technical resistance, rather than a single negative catalyst. Whether Bitcoin can defend support in the lower $60,000 range will be a key inflection point determining direction over the next 24 to 48 hours.

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