Bitcoin is trading at $65100 with a 7.90% decline over the past 24 hours, reflecting renewed selling pressure and risk-off sentiment in global markets and prompting investors and traders to reassess risk exposures, volatility expectations, and sentiment dynamics across both crypto and broader financial assets in real time.
Bitcoin is showing signs of a short-term pause after a sharp fall. Funding rates have turned negative, which usually happens when markets become overly bearish and often signals a short-term bottom. Most downside liquidity and leveraged positions are already flushed, reducing forced selling pressure, while liquidity is now sitting above price, increasing the chances of a short squeeze. BTC has bounced from the $60K support zone, a key level, and RSI along with other oscillators are oversold. On the sentiment side, the Fear & Greed Index is at extreme fear, a condition typically seen near local bottoms. Together, these signals point to a possible short-term relief move, even though the broader trend remains weak.
Key Levels to Watch
Global markets remain in a risk-off environment, with equities and risk assets under pressure due to macro uncertainty. The recent drop was triggered by strong U.S. PMI data, which came over 4 points higher than expectations. This signaled strong economic activity, raising concerns that liquidity may stay tight for longer — a negative for assets like Bitcoin. A positive development is that the U.S. government shutdown risk has ended, removing a near-term uncertainty.
The Federal Reserve continues its higher-for-longer stance, with restrictive liquidity supporting the dollar and limiting risk-taking. Historically, markets have often recovered after such strong PMI surprises, but in the short term, the data has added pressure on risk assets.
After a brief pause, spot Bitcoin ETF flows have turned negative again. U.S. spot BTC ETFs are seeing renewed net outflows, reflecting a cautious risk-off stance among investors as macro uncertainty persists. The reversal in flows signals reduced institutional appetite in the near term.
Over the past seven days, Bitcoin’s price action has shifted from testing support levels to a sharp corrective move. While recovery attempts faced strong resistance and key supports were briefly breached, the sell-off has also reset leverage and pushed momentum into oversold territory, creating conditions for stabilisation and a possible short-term recovery as buyers begin to respond at major demand zones.
In the current month, Bitcoin’s price action reflects a transition from consolidation toward directional selling. Macroeconomic uncertainties have translated into lower liquidity and heightened fear indexes, contributing to extended distribution phases in the market.
The recent fall in Bitcoin was driven by a mix of macro pressure and market fear—a stricter Fed stance with no near-term rate cuts, bearish US data (ISM), government shutdown concerns, ETF outflows, and liquidation-related panic. This combination flushed leverage, pushed sentiment to extremes, and forced price into key support.
Now, conditions point to short-term relief. Funding rates are negative, most downside liquidity has been taken, and BTC defended the $60K support. Momentum indicators are oversold, and sentiment is at extreme fear—a setup that often precedes bounces. With liquidity stacked above price, the path favors a relief rally and short-term bullishness
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