Bitcoin Drops 4%: Fear & Greed Falls to 5, Liquidations 458M$

Bitcoin fell over 4% on Monday to $64,300, erasing Friday's gains. Current price is at $65,375, 24-hour change -%3.28. The Crypto Fear and Greed Index dropped to 5 out of 100, reaching "extreme fear" levels; the index has been this low only three times since 2018: August 2019, June 2022, and earlier this month. Over 136,000 traders were liquidated in the last 24 hours, with total liquidations reaching $458 million, and 92% were leveraged long positions (BTC futures data, CoinGlass).

Bitcoin lost more than $3,000 in less than 2 hours. Source: TradingView

Why Did BTC Fall? Extreme Fear and Capitulation

Bitcoin, which reached $68,600 over the weekend, is trading at the lower support level of the channel formed after the $60,000 drop at the beginning of February. According to Glassnode, the seven-day average net realized loss for recent investors is around $500 million daily, and capitulation continues. The Bitcoin Sharpe Ratio fell to -38.4; Michaël van de Poppe noted that this is one of the lowest levels in history.

Bitcoin Sharpe Ratio has been lower only twice in history. Source: Michaël van de Poppe

Critical Support and Resistance Levels for BTC

• RSI: 33.31 (Oversold region)
• Supports: S1: 65.631$ (Strong, %86 score), S2: 60.000$ (%62 score)
• Resistances: R1: 65.914$ (%73 score), R2: 68.225$ (%72 score)
• Trend: Downtrend, Supertrend Bearish, EMA20: 70.209$

The oversold RSI may signal a recovery for BTC detailed analysis.

Institutional BTC Movements: Those Holding On Despite Fear

While fear dominates, Turkish company Net Holding (NTHOL.IS) ranks 74th among institutional holders with 352 BTC. MicroStrategy's Saylor is basing BTC purchases on common shares with privileged shares. Bitdeer, however, zeroed out its BTC on February 20 (from 2,000 BTC at year-end).

Frequently Asked Questions About BTC

When will BTC recover? Oversold at RSI 33; if $65,600 support holds, a jump to R1 $65,900 is possible.

What does Fear & Greed 5 mean? Historical bottom, associated with rallies after capitulation (2019, 2022).

Do BTC liquidations affect altcoins? Yes, similar pressure is seen in ALT coin analyses.