Bitcoin Holds $70K as Extreme Fear Lingers and $297M in Liquidations Hit Markets

The cryptocurrency market is trading higher overall, with total market capitalization rising to $2.39 trillion, up 2.42% on the day.

Despite the rebound, sentiment remains cautious, as the Fear & Greed Index sits at 8, firmly in extreme fear territory.
Bitcoin is holding near $70,177, posting a 3.83% gain over the past 24 hours, though it remains down 10.54% on the week.

Ethereum is showing similar strength, climbing 4.69% daily to $2,092, even as it continues to trail its recent highs with a 12.50% weekly decline. The broader market appears to be stabilizing after a sharp pullback, with short-term relief outweighing longer-term pressure.

Among large-cap assets, XRP rose 2.80% over the past 24 hours, while BNB added 1.20%. Solana also moved higher on the day, gaining 2.47%, though it remains among the weaker performers on a seven-day basis. Stablecoins continued trading close to their pegs, signaling limited defensive capital rotation.

Overall, the rebound appears driven more by positioning and short-term relief than a decisive shift in market sentiment. With the average crypto RSI near 47, conditions suggest the market is neither deeply oversold nor entering a new bullish phase.

Liquidations highlight ongoing volatility

Despite the price recovery, derivatives data shows elevated stress across leveraged positions. According to CoinGlass, total liquidations reached $297.68 million over the past 24 hours, with short positions accounting for $217.45 million, indicating that the upside move caught many bearish traders off guard.

Ethereum led liquidations with $137.74 million, followed by Bitcoin at $90.47 million, while Solana and XRP also contributed notable losses. In total, 94,526 traders were liquidated, with the largest single order—a $32.51 million ETHUSDT position—recorded on Bitget.

The liquidation imbalance suggests the rally was fueled in part by forced short covering rather than fresh spot demand, reinforcing the view that volatility remains elevated even as prices attempt to stabilize.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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