Bitcoin Today News: Dropped below $100,000 and quickly rebounded, "Extreme Fear" appears, signaling a potential bottom.

Bitcoin’s latest news today focuses on extreme price volatility. Over the past 30 days, Bitcoin has experienced a sharp decline from $115,000 to $99,000 amid U.S. President Trump’s tariffs on China and hawkish Federal Reserve comments. It then rebounded to $103,760. The Crypto Fear & Greed Index plummeted to 20, indicating extreme fear, but historically, Bitcoin tends to bounce back when markets are in such panic.

$2.7 Billion Liquidated and ETF Outflows for 5 Consecutive Days

(Source: CoinGlass)

Data from CoinGlass shows that over the past few days, longs worth over $2.7 billion have been liquidated. The price dropping below $110,000 appears to have triggered a series of forced liquidations. Compared to the last six months, these figures are significant, with yesterday’s liquidation events ranking among the top five single-day liquidations during this period. Such large-scale liquidations usually signal peak market panic, as highly leveraged longs are forced to close, creating a short-term extreme sell-off.

In the past nine trading days, six days saw major declines in mainstream cryptocurrencies, driven by the liquidation of billions of dollars in long positions. This level of liquidation density is rare in Bitcoin news today; the last similar event occurred in April this year when Bitcoin also experienced a sharp correction. Chain reactions from liquidations accelerate price drops, as each forced sale generates new sell orders, further pushing prices down and triggering more liquidations.

Bitcoin futures open interest has also sharply decreased. When measured in Bitcoin (which helps offset price volatility), trader positions have declined by 10% since Bitcoin peaked on October 10. Reduced participation makes it harder for Bitcoin to regain previous highs. The first sign of recovery would be an increase in open interest (OI), ideally surpassing 700,000 BTC.

Meanwhile, net outflows from Bitcoin ETF funds reflect market panic. According to Farside Investors, investors have withdrawn funds from these ETFs for five consecutive days. During this recent sell-off, Bitcoin ETFs have pulled out a total of $1.9 billion, shrinking their total assets by 3%. This institutional capital withdrawal is one of the most concerning signals in Bitcoin news today, indicating strategic retreat by professional investors rather than retail panic selling.

Federal Reserve Chair Jerome Powell’s comments have caused market turbulence, questioning the possibility of a rate cut in December. Prior to this, markets widely expected a 25 basis point rate cut. Powell’s hawkish stance shattered those expectations, pushing the U.S. dollar index (DXY) above 100 and strengthening the dollar. The high-interest-rate environment increases the opportunity cost of holding non-yielding assets like Bitcoin, providing a macro backdrop for selling.

Fear & Greed Index at 20 Hits April Low, Indicating a Reversal May Be Near

(Source: CoinMarketCap)

Market sentiment has fallen to extremely low levels. The Fear & Greed Index just dropped to 20, a new low since April. Back then, Bitcoin bottomed around $82,000. When markets are in panic and the index hits such lows, it often signals a contrarian buy opportunity. The index ranges from 0 to 100, with lower values indicating greater fear. Dropping from 42 to 20 within 24 hours shows a rapid deterioration in market sentiment.

The logic behind using the Fear & Greed Index as a contrarian indicator is based on crowd psychology. When everyone is in extreme fear, it usually means the weakest hands have sold, leaving stronger holders. Positive news or technical rebounds at this point can quickly reverse sentiment. Historical data supports this: after the fear index dropped to similar levels in April, Bitcoin rebounded over 40% in the following weeks.

Therefore, a quick price recovery is expected. However, given Bitcoin’s current bottoming range has already risen significantly from $82,000 to around $99,000–$101,000, the next rally could push Bitcoin to new all-time highs. This expectation relies on two assumptions: first, that the $100,000 support holds; second, that macroeconomic conditions do not worsen further.

The most notable technical signal in Bitcoin news today is the rapid rebounds on the daily chart after Bitcoin broke below $100,000 twice. This indicates strong buy support at that level. Yesterday’s volume exceeded the 14-day moving average by 2.85 times, highlighting high activity in a key area watched by bulls and bears alike. Such abnormal volume often occurs at bottoms, driven by panic selling and bottom-fishing.

Historical Context for Fear & Greed Index at 20

• April 2024: Index dropped to 20; Bitcoin bottomed at $82,000, then rebounded to $115,000.
• September 2023: Index fell to 25; Bitcoin bottomed at $25,000, then entered a bull run.
• Current: Index at 20; Bitcoin trading between $99,000–$101,000, with high reversal probability.

$100,000 Critical Support and 200-Day EMA Test

(Source: TradingView)

Currently, Bitcoin is expected to retest the $108,000 level from below, offering about an 8% potential upside in the short term. However, Bitcoin has also fallen below the 200-day exponential moving average (EMA) for the first time since April. Back then, Bitcoin hovered below this key indicator for about a month. This suggests Bitcoin may still be in a precarious position and could continue to decline.

The 200-day EMA is a significant long-term trend indicator. Breaking below it for the first time since April carries important trend implications. The key question is whether Bitcoin can quickly recover back above this level. A swift reclaim might indicate a false breakdown or short-term shakeout, while sustained trading below the 200-day EMA would confirm a weakening medium-term trend.

On the daily chart, Bitcoin’s quick rebounds after breaking below $100,000 highlight the strength of buy support at that level. The recent bounce from $99,000 to over $101,700, despite the overall panic environment, shows that bottom-fishing capital reacts swiftly and in sizable amounts.

However, if Bitcoin cannot hold above $100,000, the worst may still be ahead. The next support zone is around $93,000–$95,000, which aligns with previous cost bases and dense support areas. Falling to this level would test the market’s last defense, and the panic index could drop further into single digits, creating an extreme bottoming opportunity—albeit with increased uncertainty.

Recovery Path and Key Indicators to Watch

Bitcoin news today suggests that the first sign of recovery will be an increase in open interest, ideally surpassing 700,000 BTC. Currently, open interest has declined by 10%, reflecting reduced market participation—a double-edged sword: it lowers leverage risk and liquidation potential but also indicates a lack of new buying interest. Only when trader confidence returns and positions are rebuilt will open interest rise again, confirming a trend reversal.

In the short term, Bitcoin needs to retest and break above $108,000. This level offers about an 8% upside and is the first hurdle to gauge the sustainability of the rebound. Success here would target the previous high near $115,000. Failure to break through could lead to a retest of $100,000 support, with the subsequent trend depending on whether a double bottom forms or support is broken, accelerating the decline.

Macroeconomic developments will be crucial catalysts. If the Fed softens its hawkish stance or economic data suggest the need for rate cuts, a weakening dollar could ease Bitcoin’s pressure. Conversely, escalating tariffs or government shutdowns could increase macro uncertainty, continuing to weigh on risk assets. While Bitcoin news today shows short-term technical rebounds, the medium-term trend remains highly dependent on macroeconomic evolution.