Bitcoin (BTC) briefly fell below the $60,000 level before rebounding sharply, suggesting the market is seeking a chance to recover from the intense fear. Cryptocurrency analytics firm Santiment analyzed that this "fear" could actually spark a rebound, highlighting the possibility that Bitcoin could retest the $70,000 (approximately 122.75 million won) mark in the short term.
Extreme investor fear triggers rebound… Sharp rebound after $60,000 collapse
On the 6th (local time), Bitcoin briefly fell below $60,000 (approximately 88.07 million won), recording one of its largest single-day declines ever. However, it quickly rebounded, recovering to around $65,000 (approximately 95.65 million won). Analytics firm Santiment noted that immediately following the plunge, comments suggesting Bitcoin would "fall further" and "fall below $60,000" surged on social media, explaining that such extreme fears often appear just before a rebound.
This plunge is being interpreted by the trading community as nothing more than a "technical rebound," while concerns are also being raised that the market could decline again after short positions are liquidated. Santiment stated, "We must pay attention to whether this rebound is simply a 'dead cat bounce' (a rebound that ends with a temporary rebound)," adding, "With individual investor fears reaching their peak, there's a possibility of a short-term rally." This sell-off also reverses the upward momentum that formed after Donald Trump's re-election.
Long-term liquidation exceeds 2 trillion won... Short-term rebound amid mixed market conditions
Market indicators are also sending mixed signals. DeFi commentator Marvelous analyzed that while institutional investors, often referred to as "smart money," are maintaining net short positions, whale investors and celebrities have increased their long positions. He argued that "the recent surge is more likely a mechanical reaction following the liquidation of long positions worth $2.2 billion (approximately KRW 3.2293 trillion)," placing more emphasis on a technical response than a recovery in investor sentiment. Indeed, open interest remains high, and funding rates remain unchanged.
Another trader, Sykodelic, analyzed the market liquidation map and found that while short positions totaled approximately $29 billion over the past year, long positions remain at only about $100 million. This suggests the market has largely liquidated its long positions.
Bitcoin plunges 30% in a month, down 48% from its all-time high.
Bitcoin is currently trading around $65,000, down over 9% over the past 24 hours and 21% over the past week, significantly impacting the market. The decline since last month alone amounts to 30%, a 48% drop from its all-time high of $126,000 (approximately 184.84 million won) recorded in October 2025.
On-chain analytics firm CryptoQuant assessed that this bear market is progressing faster than the 2022 bear market. They explained that Bitcoin fell 23% in 83 days after falling below its 365-day moving average (MA), which significantly exceeds the 6% drop seen in early 2022 under similar conditions.
The current market is a volatile mix of fear and rebound expectations. Some traders believe that excessive short positions and oversold sentiment could lead to a strong price rebound. However, others warn that open interest (OI) remains unresolved and that without a period of sustained sideways trading, the downtrend could resume.
Ultimately, the future flow of Bitcoin depends on whether investment sentiment recovers and the situation in the derivatives market is resolved.
💡 "Fear isn't the end, it's the beginning… Market Insights, from TokenPost Academy."
As the saying goes, "psychology moves in opposite directions," extreme fear levels in the Bitcoin market can actually present opportunities for a rebound. However, few people are truly able to capitalize on this opportunity. Why is that?
To avoid being swayed by short-term, blind rebounds, you need to understand structure, not flow.
TokenPost Academy's " Level 2: The Analyst " course focuses on understanding the true flow through tokenomics and on-chain indicators, rather than simply being swayed by price movements.
Anatomy of Tokenomics: The Key to Determining "When Bitcoin Will Rise Again" Rather Than "Why Did It Fall?"
- On-chain analysis: Based on actual network data such as open interest, funding rate, and HODL wave.
And in Step 7: The Macro Master course, you will gain 'meta-analysis' skills that encompass liquidity, market cycles, and investor sentiment.
In moments of crisis, some people sell out in fear, while others seize the opportunity. Ultimately, the difference lies in "study."
Curriculum: 7-Step Masterclass to Build Your Skills, from Fundamentals to Analysis, Portfolio Strategy, DeFi, Derivatives, and Macro!
Benefit: First month free event in progress!
Go to: https://www.tokenpost.kr/membership
TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
Get real-time news... Go to TokenPost Telegram
Copyright © TokenPost. Unauthorized reproduction and redistribution prohibited.
