Bitcoin Briefly Drops Below $65,000 and Fear Hits a Historic Record

Bitcoin approaches the end of February under pressure, with market sentiment reaching historically low levels. Sellers take control, whales become active, and comparisons with the 2022 bear market multiply. Should we really expect a return to $50,000?

Bitcoin below $65,000, persistent pressure

Sunday evening, at the weekly close, sellers took control. The BTC/USD quickly dropped below the $65,000 mark, hitting a low of $64,258 according to TradingView data.

Since then, the price attempted a slight rebound before dropping again. BTC is trading at $64,560 at the time of writing, confirming the persistence of selling pressure, with a drop of nearly 5% over the week.

Among traders, opinions differ about what comes next. Castillo Trading views this pullback as a long entry opportunity, targeting a rebound to $78,200, relying on the uncovered point of control (nPOC) around $64,979. BitBull, for its part, mentions a bullish target of $76,000 before another pullback.

But not everyone sees a rosy picture. Trader Roman remains firmly bearish: “Increasing volume while the price is falling is the very definition of a strong bearish trend.” He anticipates a plunge towards the $50,000 to $52,000 zone. 

CoinGlass data confirms the prevailing nervousness, with nearly $500 million in liquidations in 24 hours across the entire crypto market.

Geopolitics, inflation, and whales: an explosive cocktail

Beyond the charts, it is the macro context that worries. The new tariffs announced by Donald Trump, combined with tensions with Iran, are sending shockwaves through all risk markets. US stock futures opened the week lower, and bitcoin was not spared.

Trader CrypNuevo sums up the mood: “Bearish uncertainty.” He envisions a wick fill below $60,000, targeting $61,000 within two to three weeks. The upcoming release of the January Producer Price Index (PPI) adds more pressure; the last two readings surprised on the upside.

On-chain signals are just as concerning. On CryptoQuant, contributor GugaOnChain reveals that the “Exchange Whale Ratio” exceeds 70%. 

Historically, this level precedes massive sell-offs. Old coins are flooding back onto platforms, while short-term holders are incurring losses. The result: abundant supply, few buyers, and a price under pressure heading toward $60,000.

CryptoQuant’s AVWAP indicator adds a final warning: the last time such a bearish confluence was observed after an ATH was in May 2022, at the start of a brutal bear market.

With a Fear & Greed Index at 5/100, its lowest level ever recorded, the market is screaming capitulation. As analyst Cryptoinsightuk wrote: “People have given up.” Yet, in bitcoin’s history, periods of extreme fear have often preceded the most violent reversals. The real question is not whether BTC will rebound but from what depth it will do so.