Bitcoin Bounces From $60k as Crowd Fear Peaks, 70K Next

Bitcoin (BTC) rebounded sharply after plunging to the $60,000 level earlier today, clawing back toward $65,000 following one of the steepest single-day sell-offs in its history. However, the sudden recovery has split market participants, with some dismissing the move as a technical bounce while others argue that extreme fear may be laying the groundwork for a push toward $70,000.

The drop to $60,000 capped weeks of sustained downside pressure and erased gains recorded after Donald Trump’s re-election. The sell-off also dragged the broader crypto market lower, with XRP sliding 13% on the day, while Ethereum, Solana, and BNB posted heavy losses.

Fear Peaks as Bitcoin Stages a Sharp Rebound

The blockchain analytics firm Santiment predicts Bitcoin to go “lower” or fall “below” current levels immediately after the dip to $60,000. According to the firm, this surge in bearish sentiment often appears near short-term price bottoms.

“High calls of “lower” or “below”, indicating the crowd is bearish and fearful. Prices typically rebound when this spikes (like now),”Santiment stated.

Bitcoin soon bounced back to around $65,000, aligning with that historical pattern. In a X post from The Kobeissi Letter it described the move as Bitcoin’s first-ever daily decline exceeding $10,000, coinciding with reports that a large leveraged position had been liquidated.

Santiment questioned whether the rebound amounted to a classic “dead cat bounce” but suggested that the sell-off may have shaken out enough retail traders to allow for a fast recovery toward the $70,000 range. Notably, the firm added that extreme fear around major assets like Bitcoin and Ethereum can sometimes fuel short-lived relief rallies.

Derivatives Data Sends Mixed Signals

Despite the rebound, underlying market data remains conflicted. DeFi analyst Marvellous said that on-chain and derivatives metrics show “smart money” holding net short exposure, while whales and well-known public figures have positioned long.

He argued that the bounce looks more mechanical than conviction-driven, pointing to roughly $2.2 billion in long liquidations as the primary catalyst.

Open interest has stayed elevated, and funding rates have remained largely flat, suggesting traders have not fully reset risk. At the time of writing, Bitcoin traded near $65,000, down nearly 9% over 24 hours and more than 21% across the past week. Monthly losses now approach 30%, leaving BTC roughly 48% below its October 2025 peak above $126,000.

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