Journalist
Posted:
It seems like the crypto market is hanging by a thread.
The Fear & Greed Index rose five points on February 25, but is still just outside the “fear zone”. Bulls need to step in, or Bitcoin [BTC] could slide back into extreme fear, signaling a renewed risk of capitulation.
On the other side there are some green shoots. Bitcoin dominance [BTC.D] encounters resistance of almost 60%, but the Altcoin Seasonal Index remains stable within a tight range. That suggests that confidence in BTC has not faded as rotational flows into altcoins remain limited.
Source: TradingView (BTC.D)
Things are also looking bullish on the derivatives side.
The 24-hour liquidation chart shows that longs are still being wiped out, making up 66% of the $250 million liquidated, while Open Interest (OI) remains under controlmeaning the leverage doesn’t get out of hand.
All in all, strong BTC-led momentum plus cool derivatives could quickly turn the market around, making Bitcoin’s current price slide feel like a healthy reset if sentiment turns on risks. In particular, analysts are keeping an eye on upcoming regulatory clarity as a potential catalyst to do just that.
The crypto market is eyeing Bitcoin as bulls gain the upper hand
The bullish signals above support a strong bottom position.
On the rotation side, investors tend toward utility plays Decred [DCR] leading 24 hour profitan increase of almost 15%. No major altcoins have cracked the top gainers, which only reinforces AMBCrypto’s view of Bitcoin’s dominance.
Against this background, strong ETF inflows make the difference clear. The BTC ETF last raised a record $254 million, while Ethereum [ETH] saw just $6.6 million. What it comes down to? Every meaningful upswing in the crypto market seems to be through Bitcoin.
Source: SoSoValue
In this context, BTC, hovering around $65,000, is starting to feel like a bottom.
However, it is far from clear as sentiment remains cautious. Because of this analysts warn that the coming clarity on March 1 could act as a catalyst or a bull trap that catches late longs off guard.
Until then, this zone is developing as a high-volatility battlefield between bulls and bears. That said, if we look at the current capital flows and the attitude of the crypto market, bulls are slowly gaining the upper hand, with a potential short squeeze on the horizon.
Final summary
- Despite the cautious sentiment, Bitcoin’s price declines around $65,000, strong inflows into ETFs and controlled derivatives indicate a possible bottom formation.
- Investors are leaning on utility activity while altcoin momentum remains limited, cementing Bitcoin’s dominance amid continued high-volatility trading between bulls and bears.