Bitcoin fell below $60,000 for the first time since 2024, plunging market sentiment into "extreme fear" and making the $60,000 mark a key support zone to watch.
The sharp drop in early February resulted in significant losses for investors, while sentiment indicators, Bitcoin ETF flows, and options data all signaled caution. Despite a rebound around $60,000, the market is still debating whether this is a "temporary Dip " or just a pause before further declines.
- Bitcoin broke below $60,000 before recovering, but sentiment remains defensive.
- Bitcoin ETF inflows and the outperform of gold could significantly influence the future direction of BTC.
- Options data shows that demand for put options remains higher than demand for call options, reflecting that downside risk has not been eliminated.
The $60,000 level could be a crucial technical support zone for Bitcoin.
The area above $60,000 coincides with the peak of the previous cycle, so technically it could help reduce correction pressure if it holds.
From a chart perspective, the area above $60,000 is a historically significant price zone, often attracting defensive buying during market sell-offs. The rebound around $60,000 shows that Dip money still exists, but it doesn't mean the downtrend has ended.
Market sentiment also plummeted to "extreme fear," with bearish consensus according to the sentiment tracking index . However, when the crowd is pessimistic, "counter-trend" views often begin to emerge if the price holds the key support zone.
Fidelity XEM $65,000 as an attractive entry point, but gold could continue to dominate.
Jurrien Timmer (Fidelity) believes Bitcoin is "pricing" the macroeconomic risks related to the Fed, while still considering $65,000 an attractive entry point.
Jurrien Timmer, Director of Global Macro at Fidelity, believes the prolonged sharp decline reflects Bitcoin "pricing in" the scenario of Kevin Warsh being confirmed as the next Fed Chairman. His post was Chia on Timmer's X (Twitter) .
“The market made it very clear last week about the upcoming announcement of the next Fed chairman. For Bitcoin, I still XEM $65,000 as an attractive entry point.”
– Jurrien Timmer, Director of Global Macro, Fidelity (article on X)
However, Timmer also warned that gold's superior strength could leave Bitcoin relatively "weak" until inflows into Bitcoin ETFs return. With investors prioritizing safe-haven assets, gold and silver could continue to attract Capital if macroeconomic uncertainty increases.
Bitcoin ETF cash flow is a major variable for the next trend.
Data Chia by Timmer shows that Bitcoin ETF inflows peaked and then declined, while gold and silver ETFs increased as investors sought safe haven assets.
According to the chart published by Timmer, inflows into Bitcoin ETFs peaked in October and then contracted. Conversely, inflows into gold and silver ETFs surged as investors shifted to metals and safe-haven assets amid macroeconomic uncertainty, particularly ahead of expectations of a new Fed chairman in May.
Conversely, the analysis team at Bitwise maintains a bearish view, suggesting that "off-chain" signals, especially those related to Bitcoin ETFs, indicate that the decline may not be over yet. This assessment is stated in Bitwise's updated market analysis report .
"Historically, prolonged periods of ETF Capital have often coincided with capitulation events, implying that a definitive reversal of ETF flows could still be the 'climax' for a broad market capitulation."
– Andre Dragosch and the analysis team, Bitwise (Market Update)
A recent report indicated that the amount of BTC held by ETFs has only decreased by 6.6% despite a price drop of over 50% since the end of 2025, highlighting the "sustainability" of ETF holdings. The key to watch is how the market will test this level of sustainability if volatility continues to increase.
Fear eased after the rebound to $60,000, but options data remains bearish.
The skew indicator in the options market has recovered slightly from very negative levels but remains in the negative, suggesting that sentiment has eased but demand for hedging against price declines remains high.
According to options data, the 25-Delta Skew index on Amberdata (Deribit BTC options) edged up slightly after hitting a low of -28 on the volatility index, but remains below 0. This typically reflects traders still pricing in downside risk over upside risk.
In reality, options traders are still buying more put options (bets on a decrease or hedging against a decrease in risk) than call options (bets on an increase in price). Therefore, even with a rebound around $60,000, the market has only "cooled down" and has not yet shifted to a state of confidence.
Conclusion: Opportunities to buy at the Dip exist, but the risk of further declines depends on ETFs and defensive sentiment.
Optimistic views see the area below $60,000 as a buying opportunity, but ETF and options signals suggest the market still needs more time to confirm a Dip.
One side argues that low prices (and the $65,000 mark according to Fidelity) may be attractive based on previous correction patterns. The other side emphasizes that the market remains defensive: if a prolonged ETF Capital occurs or money continues to flow towards safe havens (gold), Bitcoin could face further pressure.
Frequently Asked Questions
Is the $60,000 mark for Bitcoin important?
Yes. The area above $60,000 is XEM a crucial technical zone because it is close to the previous cycle's peak and could Vai as support to slow down the correction if it holds.
Why do Bitcoin ETF flows affect the price of BTC?
Bitcoin ETF inflows reflect buying and selling demand from traditional investment channels. When inflows weaken or reverse to Capital, demand may decrease, increasing the risk of downward price pressure.
What does the negative “25-Delta Skew” option data indicate?
Negative skews typically indicate that traders prefer buying put options over call options, meaning there is a higher demand for hedging against downside risk. This implies that cautious sentiment persists even during price rallies.
