Today, the flagship cryptocurrency Bitcoin price saw a massive 14% crash to the $60,000 level before recovering toward $65,000 after several technical breakdown signals appeared at once.
The sharp fall triggered panic selling, heavy liquidations, and pushed market sentiment into extreme fear across crypto traders.
Extreme Fear and Bitcoin RSI Signals Show Panic Conditions
On 5th Feb, Bitcoin broke below the key $70,000 support and quickly dropped close to $60,000 before seeing a small recovery. The fall triggered three major technical breakdown signals, pointing to strong downside momentum.
In just one week, Bitcoin has fallen nearly 25%, marking one of the fastest corrections this year. Meanwhile, trading volume was more than 3x the normal price level, showing panic selling and heavy liquidations. Secondly, more than $60 billion was wiped from the crypto market during the drop.
Lastly, Bitcoin’s daily RSI fell near 9, an extreme level usually seen only during panic phases. The crypto fear index also plunged to 5, deep in the extreme fear zone.
Such signals often appear near short-term bottoms, but analysts warn that oversold markets can stay weak for longer.
Bitcoin may now move in a broad range between $60,000 and $73,000 in the coming weeks. If selling pressure rises again, traders fear another drop toward the $55,000 level.
Bitcoin Dominance Drops Sharply Against Altcoins
Additionally, Bitcoin dominance (BTC.D) dropped 1.64% in a single day, and its RSI is rolling over, signaling weakening strength. At the same time, combined stablecoin dominance has jumped sharply, which usually means investors are moving to cash and reducing risk.
Meanwhile, altcoin dominance is rising mainly because Bitcoin is falling faster than altcoins, not due to real market strength.
Ethereum and Altcoins Follow With Heavy Losses
Following the Bitcoin drop, Ethereum plunged about 30% during the same period, with its daily RSI near 11. The ETH/BTC ratio continues to trend lower, showing that Ethereum is weaker than Bitcoin in this correction.
Several major altcoins also broke long-term support levels.
Large-cap altcoins like BNB, SOL, LTC, and XRP moved into oversold territory, with some hitting multi-month lows after the market-wide dump.
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