Bitcoin Fear & Greed Index hits record low 7 as traders debate $60K support and deeper downside

Bitcoin climbed back above $71,000 after sentiment gauges like the Crypto Fear & Greed Index plunged to a record low of 7, raising debate over whether $60,000 marks the cycle's floor. Some analysts point to oversold RSI readings and over $5.45 billion in short liquidations above current prices as fuel for a rebound, while others highlight structural weakness below key moving averages and derivatives-driven selling that could still drag BTC under $60,000. Historical Fibonacci levels around $57,000 and even $42,000 are being monitored as potential downside targets if past bear market patterns repeat.