Bitcoin drops below $63,000, triggering extreme panic; key support levels face testing

February 24 News: Bitcoin continues to be under pressure amid market “extreme panic” sentiment, with the price briefly dropping to around $62,700. It then rebounded slightly above $63,000. Over the past 24 hours, the price has fallen by more than 3%, and the overall crypto market has weakened, with the total market capitalization of digital assets falling back to approximately $2.25 trillion. Meanwhile, mainstream assets such as Ethereum, XRP, and Solana have all experienced varying degrees of correction, indicating a clear cooling of risk appetite.

Presto Research analyst Min Jung pointed out that this recent dip below $63,000 mainly reflects worsening market sentiment rather than a single fundamental change. Macroeconomic uncertainties, such as tariff unpredictability and rising geopolitical risks, have driven funds toward safe-haven assets, reducing short-term demand elasticity for crypto assets. The Fear & Greed Index has dropped to 5, placing it in the extreme pessimism zone historically, suggesting market sentiment is near a cyclical bottom.

From a structural perspective, deleveraging remains the dominant factor. Recently, long liquidation has increased, open interest has significantly decreased, and negative funding rates persist, indicating a clear bearish bias in the futures market. Andri Fauzan Adziima, head of research at Bitrue, stated that the current sell-off appears more like a leverage squeeze rather than a full capitulation. Short-term holders are heavily impacted, but on-chain data shows that long-term holders have not yet engaged in large-scale selling, and the HODL indicator still suggests some funds are accumulating at low levels.

Market liquidity is also weak. The US spot Bitcoin ETF has experienced net outflows for the fifth consecutive week, with a recent single-day outflow of about $203 million. Ethereum ETFs have also seen outflows of approximately $50 million, reflecting increased institutional caution.

On the technical side, the $60,000 to $63,000 range is seen as a key support zone. If the price can hold this area, negative funding rates may trigger short covering and lead to a short-term rebound. However, a confirmed break below $60,000 could push the market further down toward the mid-$50,000 range, with an extreme scenario testing the $47,000 zone. Analysts emphasize that future focus should be on ETF fund flows, macro policy changes, and the speed of market sentiment recovery to determine whether Bitcoin is entering a deeper correction cycle.