Is $65,000 the Real Bottom for Bitcoin? Crypto Market Plunges into ‘Extreme Fear’

▲ The “Fear and Greed Index” calculated by cryptocurrency data provider Alternative

As investor sentiment in the digital asset market has plunged into an Extreme Fear phase, analysts suggest that Bitcoin (BTC) could establish a true market bottom by late March if it manages to hold the $65,000 support level.

According to crypto outlet AMB Crypto on February 21 (local time), the market has been trapped in a narrow range for more than two weeks while searching for direction. Following its fourth-quarter rally, Bitcoin consolidated between $85,000 and $90,000 for over six weeks and briefly surpassed $97,000, but failed to maintain upward momentum. Subsequent corrections and liquidity tightening erased those gains, with the asset now unable to defend its previous support zones.

The outlet projected that if the current trend persists, a meaningful directional shift could occur around late March, provided Bitcoin defends the $65,000 level. Should strong accumulation emerge in this range, $65,000 could serve as a solid market floor.

However, conviction in a market rebound remains extremely weak. On-chain indicators show continued net outflows from spot Bitcoin ETFs, signaling waning institutional interest. The Coinbase Premium Index has also remained in negative territory, indicating a significant lack of spot buying pressure.

The Fear and Greed Index, which reflects overall market sentiment, underscores investors’ diminished risk appetite. Historically, when the index reaches Extreme Fear, it tends to coincide with market bottoms as capitulation selling intensifies. Conversely, market tops often form when the index enters Greed territory and profit-taking accelerates.

This cycle, however, has displayed somewhat unusual characteristics. When Bitcoin reclaimed $97,000, the index remained in neutral territory, suggesting an absence of aggressive accumulation at the highs. As a result, bearish forces have maintained control of the market, and with even dip-buying demand fading, the current sideways trend remains heavily tilted in favor of sellers.

Disclaimer: This article is provided for informational purposes only and does not constitute investment advice. The publisher is not responsible for any investment losses incurred based on this content.