Crypto Fear & Greed Index Plunges to 9 as Bitcoin Falls Toward $60K, $2.7B Liquidations Hit Mostly Longs
The Crypto Fear & Greed Index dropped to 9/100 — its lowest since June 2022 — as Bitcoin plunged from a 2026 peak near $97,000, losing about 38% in three weeks and erasing roughly 16 months of gains. BTC briefly dipped toward $60,000 and traded around $64,000–$65,000. Technicals show Bitcoin below the 200-week exponential moving average (200-week EMA), RSI near 21 (deeply oversold), and Supertrend signaling bearish momentum. Key intraday supports cited are $62,909 and $60,000; resistances near $65,881 and $71,040. CoinGlass reports more than 588,000 traders liquidated for roughly $2.7 billion in the past 24 hours, with about 85% of those liquidations hitting leveraged long positions (mostly BTC). Analysts attribute the sell-off to weakness in US tech stocks, worries about an AI valuation bubble, and softer US jobs data that could delay Fed rate-cut plans — increasing risk aversion. MicroStrategy’s executives were cited warning of balance-sheet stress if BTC plunged far below the company’s average purchase price (~$76,000), with a hypothetical worst-case mention of much lower levels. For traders: expect elevated short-term volatility, monitor liquidation clusters, the 200-week EMA and the $60k–$63k support band for bounce or breakdown signals, and manage leverage aggressively given high recent long-liquidation concentration.
Bearish
The combined articles point to a clear bearish outlook for Bitcoin. Price has lost roughly 38% from a 2026 high and breached the 200-week EMA — a significant long-term technical threshold — while momentum indicators (RSI ~21, Supertrend) show strong downside bias. The extreme reading on the Fear & Greed Index and concentrated liquidations ($2.7B, ~85% longs) indicate forced deleveraging that can amplify downside moves and increase short-term volatility. Macro drivers (weak US tech, concerns over an AI valuation bubble, softer jobs data) add risk-off pressure that could delay Fed easing and weigh on risk assets including BTC. For traders, this implies elevated probability of further downside or prolonged consolidation until selling exhausts or key supports ($60k–$63k) hold. Given the high share of long liquidations, short-term relief rallies may be sharp but fragile; risk management and reduced leverage are prudent.