In accordance with AMBCrypto, Bitcoin's recent price action has shifted from technical to psychological drivers, with stretched leverage and fading sentiment raising concerns of a broader market unwind. The total crypto market cap dropped $300 billion in under a week, with Bitcoin accounting for nearly 53% of the drawdown. Over $1 billion in liquidations occurred, with long positions suffering the most, signaling a potential bull trap. On-chain data shows unrealized losses at 1.3% of BTC’s market cap, below the 5% level typically signaling capitulation. The Fear and Greed index retreated to 31, reflecting a defensive market stance. Bitcoin’s Open Interest (OI)–Price Divergence metric has hit 10.35%, the highest since mid-August, raising concerns of a potential breakdown toward the $100k–$105k zone.
Bitcoin Market Volatility Sparks Investor Anxiety Amid BTC-Led Deleveraging
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