BTC rebounds 0.41% over 4 hours: extreme fear triggers short liquidations, technical support emerges

Between 20:00 on June 7, 2026 and 00:00 on June 8, 2026 (UTC), BTC saw a modest rebound, with a return of +0.41%. The price range was 61,217.6–61,706.8 USDT, with a volatility of 0.80%. Against the backdrop of continued market pressure and the total market cap nearing the February 2026 low, BTC experienced a technical rebound near the key $60,000 support level. Extreme sentiment led to concentrated short liquidations.

The main driver behind this move was that extreme fear triggered short covering. The Fear and Greed Index plunged to 11 on June 7, entering the “extreme fear” zone, down sharply from 30 a week earlier. Historical experience shows that extreme fear is often accompanied by seller exhaustion; some shorts chose to take profits rather than add positions, directly driving the price rebound.

Second, deleveraging in the derivatives market accelerated the short-covering process. Open interest in futures declined by 13.96% over the past seven days, shrinking from $5.553 billion to $4.504 billion, indicating that both longs and shorts were closing positions rather than adding new ones. At the same time, BTC perpetual funding rates stayed neutral-to-slightly positive, at around 4.15% annualized, with no signs of extreme speculation—leaving room for prices to recover. In addition, as price approached the $60,000 psychological level and production costs, RSI was in an oversold state at 18, creating demand for a technical rebound. Some large whales also accumulated in batches near key support, and the rate of ETF outflows may slow at the margin. With multiple factors converging, the rebound magnitude was amplified.

The current rebound is limited (+0.41%), reflecting that market confidence remains insufficient. Institutional capital outflows have not yet reversed, so it’s important to watch whether the $60,000 key support holds. If ETF funds continue to see large-scale outflows or macro policy uncertainty intensifies, it could trigger a new round of volatility.