Extreme Fear Signals Possible Bitcoin Capitulation Near $65,000

Summary On February 12, Bitcoin broke below the short-term MA20 and MA50 moving averages, triggering technical selling. It tested the $65,000 level, underperforming the broader cryptocurrency market amid a macro-driven sell-off. The key risk remains a breakdown below $65,420, which could trigger stop-loss orders and target the next support near $64,000. By Yaroslav Dmytrenko Bitcoin ( BTC-USD ) tested the $65,000 level, underperforming the broader cryptocurrency market amid a macro-driven sell-off. Mixed U.S. labor market and home sales data have prompted investors to move away from risk assets. On February 12, Bitcoin broke below the short-term MA20 and MA50 moving averages, triggering technical selling. The decline coincided with drops in the S&P 500 ( SPX ) and Nasdaq ( NDX ) indices of 1% and 1.5%, respectively, which can be seen as a reaction to the latest economic statistics. David Rosenberg, founder and president of Rosenberg Research, highlighted inconsistencies in U.S. employment trends, urging caution and warning against overly optimistic labor market forecasts despite some positive headlines. According to Rosenberg, the six-month employment trend is essentially stagnating, while the annual nonfarm payroll trend shows only moderate growth of 0.2%. Home sales also came in below expectations. Bitcoin continues weak bearish momentum Against this backdrop, Bitcoin resumed its decline after a weak rebound and managed to hold the $65,000 resistance level largely due to fading selling pressure. The cryptocurrency is now rebounding toward $67,000. Bitcoin Hourly Chart (Source: TradingView) Given the ongoing bearish trend, further attempts to test the $65,400 zone are likely. A breakdown below this level could open the way to $64,000 and trigger extended liquidations. However, if positive news revitalizes the market, a break and sustained move above $67,000 could pave the way for gains toward $69,000-70,000. The short-term trend remains bearish, with price retesting the recent low at $65,420. The CMC Fear & Greed Index stands at 8 (“Extreme Fear”), which historically may signal local capitulation. If this support level holds, the base-case scenario points to a rally toward resistance at $67,036. The key risk remains a breakdown below $65,420, which could trigger stop-loss orders and target the next support near $64,000. This material may contain third-party opinions; none of the data and information on this webpage constitutes investment advice according to our Disclaimer . While we adhere to strict Editorial Integrity , this post may contain references to products from our partners. Original Post Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.