Bitcoin Dips Below $70,000 as Extreme Fear Index Hits 10: What Traders Are Watching Next - Blockonomi
by Brenda Mary · BlockonomiTLDR:
Table of Contents
- TLDR:
- Short Positions Build as Bears Set Their Sights on $65,000
- Institutional Buyers Accumulate as Exchange Supply Drops to Multi-Year Lows
- Bitcoin fell over 3% in 24 hours, sliding from above $74,000 to around $68,700 on Sunday amid macro fears.
- The Crypto Fear and Greed Index dropped to an extreme fear reading of 10, reflecting sharp decline in market confidence.
- Trader Lennaert Snyder targets a Bitcoin drop to $65,580, planning to add shorts after a confirmed bearish structure break.
- Institutional buyers continue accumulating BTC as exchange supply hits multi-year lows, contrasting with heavy retail panic selling.
Bitcoin fell sharply on Sunday, dropping from above $74,000 to around $68,700 in a matter of hours. The move pushed the Crypto Fear & Greed Index to an extreme fear reading of just 10.
Rising oil prices, a pause in Federal Reserve rate cuts, and ongoing geopolitical tensions drove the sell-off. Bitcoin recorded a 3.11% decline over 24 hours, with trading volume reaching approximately $29.1 billion.
Short Positions Build as Bears Set Their Sights on $65,000
The latest price drop has given bearish traders confidence to hold and grow their short positions. Selling pressure remained active throughout the week, contributing to a total seven-day decline of 4.02%.
This combination of macro pressure and bearish momentum pushed market fear to its most extreme reading in recent weeks.
Crypto trader Lennaert Snyder shared his bearish stance openly on social media during Sunday’s session. “My target is still the ~$65,580 low, and possibly even lower for Bitcoin,” Snyder wrote. He also planned to add margin to his shorts using the upper wick of the next weekly candle.
Snyder noted caution around a key level at $72,700, identifying it as a Fair Value Gap zone. He stated he would only enter a trade after seeing a liquidity push and a bearish market structure break.
His approach pointed to a disciplined strategy, waiting for price confirmation before committing to new short trades.
A notable counterrisk, however, remains for those currently holding short positions. Whale Insider reported that $5 billion in crypto shorts would face forced liquidation if Bitcoin climbs back to $75,000. That level therefore becomes both a target for bulls and a danger zone for active short sellers in the market.
Institutional Buyers Accumulate as Exchange Supply Drops to Multi-Year Lows
Even as retail sentiment fell to extreme fear, institutional buyers continued accumulating Bitcoin through the downturn.
This divergence between retail and large-scale buyers has been a repeated pattern during past crypto market corrections. Institutions appear to view the current dip as an entry point rather than a reason to sell.
Exchange supply has also dropped to multi-year lows, further shaping the current market picture. Lower exchange balances typically point to Bitcoin being moved into cold storage for long-term holding.
This movement often tightens available sell-side supply on exchanges, setting the stage for potential price rebounds.
Market watchers are now turning their attention to Monday’s session, closely eyeing the $72,000 price level. A recovery above that zone could signal a momentum shift and place short positions at increased risk. Bulls will need consistent buying volume to challenge the bearish tone that dominated the weekend.
Bitcoin’s near-term path will largely depend on how macro factors unfold over the coming days. Bears are holding firm to the $65,580 target, while bulls look for a sustained break above $72,000.
The market remains at a crossroads, with either outcome carrying major consequences for active traders on both sides.