Peter Smith
⬤ According to Santiment, Bitcoin took a sharp hit late Sunday night US time, sliding roughly 4.5% in just two hours and dipping below $65,000 to around $64,200, a level not seen since early February. What made the move stand out was its timing. The drop unfolded during one of the quietest windows of the week for social activity, yet negative sentiment across the market jumped to a two-week high anyway, as tracked in the latest Bitcoin Market Update covering the open interest collapse.
⬤ The derivatives market told a stark story. Open interest in Bitcoin futures and perpetuals fell to roughly $19.5 billion, well below the peaks seen earlier in 2026. Around $990 million in BTC open interest was wiped out in that two-hour window alone. The breakdown of the $65K support triggered a wave of stop orders and forced liquidations, particularly flushing out leveraged long positions that had built up during the rally. The BTC Price Analysis showing the $68K rejection and falling wedge had already flagged growing technical pressure ahead of this move.
Despite the late-night timing when social volume is typically subdued, bearish commentary and fear-related metrics climbed sharply.
⬤ The sentiment shift was hard to ignore. Even with lower-than-usual social volume, fear and bearish commentary spread quickly once the $65K floor gave way. This kind of crowd psychology feedback loop tends to exaggerate short-term moves, turning a technical break into a broader emotional selloff as traders react to each other's reactions rather than the fundamentals.
⬤ Put it all together and the picture is a meaningful repricing of risk: a broken support level, a derivatives market rapidly unwinding, and a sentiment gauge turning bearish fast. Looking ahead, the BTC Price Prediction placing the $86K–$115K zone as key in the corrective setup offers some longer-term context, but in the near term, how Bitcoin behaves around these technical levels will likely dictate whether this is a reset or the start of something deeper.
Peter Smith
