Bitcoin, Ethereum, Crypto News and Price Indices

Bitcoin (BTC) pushed above $71,000 on Monday after market sentiment indicators in the crypto market fell to new lows.

Some analysts believed that “intense fear” and reverse liquidity could help bitcoin hold its annual lows of $60,000, but others warned that weak market conditions and futures could push prices lower.

Main Receptors:

The Crypto Fear and Greed Index has dropped to a low of 7, showing intense fear in the market.

More than $5.5 billion in short-term excess liquidity could trigger a re-invigoration.

Weak price trends and rising commodity prices could still drag Bitcoin below $60,000.

Sentiment and liquidity point to $60,000 as support

According to Michael van de Pop, founder of MN Capital, Bitcoin is turning on emotional readings that have previously marked market lows. According to Van de Pop, the Crypto Fear and Greed Index fell to 5 over the weekend (the last recorded reading was 7), the lowest reading in history, while the daily Relative Strength Index (RSI) for BTC fell to 15, indicating oversold conditions.

These levels were last seen during the 2018 bear market and March 2020 during the Covid-19 crisis. Van de Pop said that such conditions could prevent BTC from recovering and testing the $60,000 level immediately.

CoinGlass adds data to the bullish case. Bitcoin liquidity heatmap shows cumulative short liquidity of over $5.45 billion.

This disparity suggests that an upward move could trigger a covering of compelling shorts, leading to a BTC rally.

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The structural weakness of BTC focuses on low side effects

CryptoQuant data shows that Bitcoin is trading below its 50-day moving average of $87,000 and below its 200-day moving average of $102,000. This wide gap indicates a correction or “price correction” phase following the previous rally.

CryptoQuant's Price Z-Score is negative at -1.6, indicating that BTC is trading below the statistical average, a sign of pressure and trend fatigue. Such conditions predate extended foundation construction rather than immediate rehabilitation.

Crypto analyst Darkfost has highlighted the growing dominance of sales in commodity markets. The monthly net receipt volume has turned significantly negative on Sunday – $ 272 million, Binance's receiver buy-sell ratio has fallen below 1, indicating a strong selling pressure.

With futures volumes currently weighing on spot flows, strong spot demand is needed to trigger a bullish reaction from BTC.

Adding to the long-term caution, Bitcoin investor Jelle noted that the bottom of the previous Bitcoin bear market formed below the 0.618 Fibonacci retracement. For the current cycle, that level sits near $57,000, with deep downside conditions near $42,000 if history repeats itself.

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