Bitcoin tests $80k–$85k zone as Fear & Greed at record low

Bitcoin bottom not confirmed: Turning-point signals are emerging

As reported by Yahoo Finance, Bitcoin is flashing signals that have marked major turning points in past cycles, but not yet the kind that typically accompany a durable bottom. That framing implies conditions may be shifting, while the evidence for a lasting floor remains incomplete.

In practice, a durable bottom is usually validated by a cluster of signals rather than a single datapoint, and by price behavior that holds on retests. For now, the balance of indications points to a market at a potential inflection rather than a confirmed trough.

Why the Crypto Fear and Greed Index’s historic low matters

According to CCN, the Crypto Fear and Greed Index crashed to a historic low around 5–8, the deepest extreme fear ever recorded. Such capitulation-level readings often coincide with or precede turning points because weak hands typically exit near extremes.

However, extreme fear alone does not guarantee immediate recovery. Historically, markets can remain stressed, form bases over time, or even register lower lows before the bottom is widely recognized.

Immediate impact: $80,000–$85,000 support zone under scrutiny

As reported by Cointelegraph, prominent market voices including Arthur Hayes have framed $80,000–$85,000 as a pivotal support zone, while cautioning that a final push lower cannot be ruled out. In this context, validation would likely require a successful retest that holds, visible stabilization in liquidity, and diminishing forced selling.

Corporate balance-sheet behavior can also influence perceived floors when liquidity thins. “We are not going to be selling” Bitcoin and the plan is to keep buying “forever,” said Michael Saylor, founder of MicroStrategy (MSTR), as reported by Investopedia. Persistent accumulation can reduce circulating supply during stress, but it does not, by itself, confirm a bottom without broader market corroboration.

Separately, Matt Hougan, chief investment officer at Bitwise Asset Management, has highlighted signs of seller exhaustion while acknowledging that macro risks could still pull prices lower, as reported by Coinpaper. In practice, a durable bottom would be supported by improving breadth, sustained spot demand, and the absence of new shock catalysts.

Macro drivers: liquidity, U.S. Federal Reserve, and market risk

Liquidity conditions and the path of U.S. Federal Reserve quantitative tightening remain central variables for crypto risk appetite. A pause or moderation in balance-sheet runoff could, in theory, improve dollar liquidity, but confirmation would need to be observed in funding markets and risk-asset flows.

Based on data from CoinGlass, investors liquidated about $2.56 billion during a recent bout of volatility, underscoring how quickly leverage can unwind when macro uncertainty rises. Episodes like this often complicate bottom-finding because forced deleveraging can overshoot intrinsic demand.

For equity proxies linked to Bitcoin exposure, price action offers additional context. According to Nasdaq, MicroStrategy’s MSTR closed near 123.00 on February 12 and traded around 123.61 in the subsequent overnight session, illustrating how crypto-linked equities can reflect shifting sentiment even outside regular market hours. This article is for informational purposes only and does not constitute investment advice.