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Earlier today, Bitcoin price fell to around $60,000 before rebounding to $65,000, experiencing one of the most intense daily sell-offs in history.
Traders are dividing the rally into two categories: those who believe it is just a temporary technical rebound, and those who believe it is a direct result of an escalation of collective fear that could pave the way for gold prices to rise to $70,000.
On February 6, Santiment noted that social media posts predicting further losses for Bitcoin surged after reaching $60,000, a sign that the company said often appears near short-term rallies.
In fact, after Bitcoin fell below $10,000 for the first time in a single day as described in the “Kobeissi Letter,” the price was back around $65,000.
“Santiment” raised the question of whether this is a dead cat rebound, but it suggested that some retail investors exited under the pressure of fear, which may allow the stock market to quickly rebound to the 70,000 range.
This comes after weeks of sustained downward pressure in the United States, erasing post-election gains in late 2024 and causing major currencies to fall.
In the recent bearish wave, XRP has fallen sharply on the daily line, and Ethereum, Solana, and BNB have also suffered heavy losses.
Despite the rebound, dot-com and derivatives data showed a mixed picture.
According to observers, smart money favors net short positions, while long positions appear on whales and public figures.
The team believes that what is happening is closer to a mechanical response following a large unwinding of buy positions, especially as open interest remains high and funding rates are stable.
From a performance perspective, at the time of writing, the price of Bitcoin is close to $67,000, with large daily and weekly losses, and monthly losses of approximately 30%, which is a clear difference from the peak of over $126,000 in October 2025.
The CryptoQuant article also reports that by their standards, the current decline is accelerating compared to the start of the bear market in 2022, while Santiment sees that sentiment towards Bitcoin and Ethereum has become very pessimistic, which can sometimes coincide with short-wave rallies when personal fears are high.
The bottom line is that the market is currently divided:
One team believes that fear and the accumulation of short positions could push the price towards $70,000, while another warns that the rally may not be sustained unless open interest declines and the price heads for a longer period of sideways trading before a sustained recovery.
Also read:
Strategygy CEO: Bitcoin must fall to $8,000 level to threaten our budget!
Mass Liquidation in Crypto Markets: Why Are Bitcoin and Altcoins Plunging So Much?
