After Saturday’s sharp sell-off triggered by escalating tensions in the Middle East, cryptocurrency markets staged a notable rebound on early Sunday. Bitcoin briefly pushed above $68,000 before pulling back, while major altcoins also recovered a large portion of their losses.
Despite the bounce, sentiment indicators remain deeply cautious, suggesting that traders are not yet convinced the volatility is over.
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Bitcoin Reclaims Ground
Bitcoin gained nearly 5% over the past 24 hours, trading around $66,800 after briefly surpassing the $68,000 mark earlier in the session. The move effectively erased most of Saturday’s decline, when prices dropped toward the $63,000 region.
Ethereum climbed back toward $2,000, while Solana rebounded sharply toward $86. Other large-cap assets also recovered, reflecting a broad-based relief rally across the market.
However, short-term pullbacks in the last trading hour suggest that momentum remains fragile. The rebound occurred during weekend trading, when liquidity is typically thinner and price swings can be amplified in both directions.
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Sentiment Remains in Extreme Fear
Despite the recovery in prices, broader sentiment indicators show little improvement. The Fear and Greed Index stands at 14, firmly within the “Extreme Fear” category, where it has remained throughout the past week.
This divergence – prices rebounding while sentiment stays deeply negative – confirms the fragile nature of the current market environment. Investors appear cautious, and positioning remains defensive.
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All Eyes on Monday
The key test for this rebound will come when equity futures, oil markets, and bond markets reopen. If traditional markets stabilize, crypto’s gains may hold. If volatility spreads across asset classes, digital assets could once again face pressure.
