Bitcoin's $79,000 Collapse... Is the Real Fear Market Beginning?

▲ Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Cryptocurrency Decline/AI Generated Image

While Bitcoin and major altcoins were pushed down across the board by profit-taking, some traders evaluated this decline not as a phase of fear, but as a reasonable retracement before the market chooses its next direction.

According to Benzinga on May 15 (local time), Bitcoin (BTC) fell below $80,000 again on Friday, pushing down to the $79,000 range. Ethereum (ETH), XRP, and Dogecoin (DOGE) also gave back some of their recent gains, and investor sentiment across major cryptocurrencies cooled.

The Crypto Fear & Greed Index fell to 46. Benzinga reported that this figure indicates market sentiment remains in a neutral zone despite increased volatility in major cryptocurrencies. According to Coinglass data, 127,628 traders were liquidated in the last 24 hours, with the total liquidation volume reaching $440.26 million.

ETF fund flows were mixed for Bitcoin and Ethereum. According to SoSoValue data, Bitcoin spot ETFs saw a net inflow of $131.3 million on Thursday. Conversely, Ethereum spot ETFs experienced a net outflow of $5.7 million. Benzinga identified Stable, Ethena, and Celestia as the main declining assets in the last 24 hours.

Trader DonWedge viewed the $75,000 range for Bitcoin as one of the most crucial price levels in the short-term market. He explained that this range is close to the midpoint of Bitcoin's broader ascending channel structure. DonWedge assessed that a correction down to the midline of the long-term channel is a logical reset phase that occurs before the market determines its next major direction, stating, "It's a logical move, not a level of fear."

Cryptoinsightuk pointed out that despite Bitcoin showing stronger price movements earlier this week, funding rates closed in negative territory. He explained that this means derivatives traders are still heavily skewed towards short positions. Analysis also suggested that if Bitcoin breaks above its current sideways range, traders who made bearish bets might aggressively close their positions, leading to a short squeeze.

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