Crypto Crowd Is Bearish, BTC Leads Rebound: Is It a Dead-Cat-Bounce?

• The crypto crowd has turned extremely bearish after the Bitcoin price dropped to a low of $60k.
• Santiment warns rebound may be a dead-cat bounce as crowd stays bearish.
• Falling liquidity and a macro bear trend signal BTC nearing an accumulation zone.

The crypto community has turned extremely fearful after Bitcoin (BTC) capitulated to $60,000. Despite the mild Bitcoin price rebound on Friday, February 6, 2026, the crypto community has remained extremely bearish.

According to data from CoinMarketCap, its Fear and Greed index dropped to 5/100, the lowest in more than three years. Furthermore, more than 580k crypto traders have been liquidated of over $2.5 billion during the past 24 hours, mostly involving long traders.

Crypto Traders Predict Further Capitulation Amid Fear

According to Santiment analysis, the majority of crypto investors on social media are calling for a further selloff in the coming days. Kalshi prediction market reinforces the outlook, pricing a 90% probability of Bitcoin slipping under $60,000.

As per Santiment, today’s crypto rebound may be a classic dead-cat bounce since the crowd will heavily impact the price action. Furthermore, Santiment stated that if the crypto crowd turns bullish following today’s mild rebound will result in renewed capitulation.

Is Bitcoin Near a Market Bottom?

The crypto market has seen low liquidity inflows in recent months amid a parabolic rally in the precious metals industry. As such, the extreme selling pressure has outshone the existing buyers globally. Moreover, the crypto regulatory push has slowed down in the United States, which significantly influenced the institutional adoption wave. From a technical analysis standpoint, Bitcoin’s price is already in a macro bear market, akin to the post-2021 bull market. As such, CryptoQuant’s Market Cycle Signals show Bitcoin price is approaching its accumulation phase of around $54.6k.

What’s the Bigger Picture

The crypto market failed to follow Gold and Silver in a parabolic rally due to low conviction from whales and retailers. According to onchain data from Santiment, Bitcoin price has failed to retain bullish momentum in the past few months due to the capitulation of whales amid rising accumulation from small account holders. 

Nonetheless, the crypto market has accumulated significant supportive fundamentals in the past few years to fuel a potential V-shaped rebound. Furthermore, the anticipated capital rotation from the precious metals industry to Bitcoin, driven by a supportive regulatory environment, will sustain a bullish outlook.

Related: Bitcoin Shows Early Relief as Coinbase Premium Index Rebounds