Journalist
Posted:
The crypto market looks like it’s hanging by a thread.
The Fear & Greed Index jumped five points on the 25th of February, but it’s still just shy of the “fear” zone. Bulls need to step in, or Bitcoin [BTC] could slip back toward extreme fear, signaling renewed capitulation risk.
On the flip side, there are some green shoots. Bitcoin dominance [BTC.D] is running into resistance just under 60%, but the Altcoin Season Index is holding steady in a tight range. That suggests confidence in BTC hasn’t faded as rotational flows into altcoins stay capped.
Source: TradingView (BTC.D)
On the derivatives side, things look bullish, too.
The 24‑hour liquidation chart shows longs are still getting wiped out, making up 66% of the $250 million liquidated, while Open Interest (OI) remains under control, meaning leverage isn’t getting out of hand.
All in all, strong BTC-led momentum plus cool derivatives could quickly flip the market, making Bitcoin’s current chop feel like a healthy reset if sentiment swings risk-on. Notably, analysts are keeping an eye on the upcoming regulatory clarity as a potential catalyst to do just that.
Crypto market watches Bitcoin as bulls gain the upper hand
The bullish signs above back up a strong bottom thesis.
On the rotation side, investors are leaning into utility plays, with Decred [DCR] leading 24‑hour gains, up nearly 15%. No major altcoins cracked the top movers, which just reinforces AMBCrypto’s take on Bitcoin dominance.
Against this backdrop, strong ETF inflows are making the divergence clear. The BTC ETF pulled in $254 million in the latest record, while Ethereum [ETH] saw only $6.6 million. Bottom line? Any meaningful rebound in the crypto market is looking like it’s going to run through Bitcoin.
Source: SoSoValue
In this context, BTC hanging around $65k is starting to feel like a bottom.
However, it’s far from clear-cut, as sentiment remains cautious. Because of this, analysts warn that the upcoming clarity on the 1st of March could act either as a catalyst or as a bull trap that catches late-longs off guard.
Until then, this zone is shaping up as a high-volatility battlefield between bulls and bears. That said, looking at current capital flows and the crypto market’s stance, bulls are slowly gaining the upper hand, with a potential short squeeze looming on the horizon.
Final Summary
- Despite cautious sentiment, Bitcoin’s chop around $65k, strong ETF inflows, and controlled derivatives suggest a potential bottom forming.
- Investors are leaning into utility plays, while altcoin momentum remains capped, reinforcing Bitcoin dominance amid ongoing high-volatility trading between bulls and bears.