The crypto community was in extreme fear after Bitcoin (BTC) fell to $60,000. Despite the gradual rebound in Bitcoin price on Friday, February 6, 2026, the cryptocurrency community remains extremely bearish.
According to data from CoinMarketCap, the company’s Fear and Greed Index fell to 5/100, the lowest in more than three years. Additionally, over 580,000 crypto traders liquidated more than $2.5 billion in the past 24 hours, most of them long traders.
Crypto traders predict further capitulation amid fear
According to Santiment analysis, the majority of crypto investors on social media are looking for further declines in the coming days. The Calci prediction market reinforces its outlook by pricing in a 90% probability that Bitcoin will fall below $60,000.
According to Santiment, today’s crypto rebound could be a typical dead cat bounce, as crowds have a huge impact on price trends. Additionally, Santiment said that if the crypto crowd turns bullish after today’s mild rebound, it will result in a new capitulation.
Is Bitcoin nearing market bottom?
Liquidity inflows into the crypto market have declined in recent months as the precious metals industry has gone on a parabolic rally. As a result, extreme selling pressure is outweighing existing buyers around the world. Furthermore, the movement towards cryptocurrency regulation has slowed down in the United States, which is having a major impact on the wave of institutional introduction. From a technical analysis perspective, Bitcoin price is already in a macro bear market similar to the bull market from 2021 onwards. As such, CryptoQuant’s market cycle signals indicate that Bitcoin price is approaching an accumulation phase of approximately $54.6 million.
What is the big picture?
Cryptocurrency markets were unable to follow gold and silver in their parabolic rally due to low confidence from whales and retailers. According to Santiment on-chain data, Bitcoin price has been unable to maintain its bullish momentum in recent months as whales capitulated amid increased accumulation by small account holders.
Nevertheless, the crypto market has accumulated significant supportive fundamentals over the past few years that will fuel a potential V-shaped recovery. Additionally, a supportive regulatory environment is expected to drive capital flows from the precious metals industry into Bitcoin, maintaining a bullish outlook.
Related: Bitcoin signals early easing as Coinbase Premium Index recovers
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