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>>Analysts report that Bitcoin has erased its recent gains, pushing market sentiment to an all‑time low of fear.

Analysts report that Bitcoin has erased its recent gains, pushing market sentiment to an all‑time low of fear.

crypthub

about 3 hours ago

Market Panic and Liquidations

More than 144,800 traders were liquidated in the past 24 hours, wiping out over $508 million, with about 92 % of those losses on long positions. The Crypto Fear & Greed Index fell to 5 / 100, a level seen only three times since 2018, indicating extreme panic. Such panic typically forces out weak holders and creates space for stronger participants.

Realized Losses and Capitulation Signals

Glassnode reports a seven‑day moving average of net realized losses near $500 million per day, reflecting aggressive selling pressure. While brutal on charts, large‑scale exits can end a sharp decline by reducing the pool of sellers left in the market. This dynamic often precedes a period of lower volatility and potential accumulation.

Price Action and Macro Influence

Bitcoin peaked around $68,600 on Saturday before slipping to the mid‑$64,000 range amid a wave of exits. The coin remains roughly 48 % below its October high and 5.5 % under the 2021 peak, with the $60,000‑$70,000 band acting as a key support zone. Geopolitical tension and risk‑off sentiment have nudged traders toward safer assets, deepening the pullback.

Risk Metrics and Outlook

The short‑term Sharpe Ratio plunged to –38.4, an unusually low reading that historically aligns with “low‑risk” accumulation phases. Extreme negative values suggest downside risk has been largely exhausted, though they do not guarantee a rebound. Analysts warn of possible further support tests, but also see the confluence of liquidations, fear, and losses as a potential base for future buying.