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Bitcoin near $68K as fear spikes: Santiment sees buy signal

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Bitcoin price outlook: buy signals appear
Bitcoin Price
  • Bitcoin price hovers near $68,500 but saw intraday lows of $68,000.
  • Analysts say a textbook buy signal is flashing.
  • Bulls could target $75,000-$80,000 next.

Bitcoin continues to face headwinds, with ongoing tensions in the Iran conflict and the macro outlook key.

Despite the cryptocurrency dipping to near $68,000 amid stock market declines, analysts are pointing to a potential contrarian signal as they forecast a new leg up for BTC.

The bellwether digital asset traded around $68,500 in early trading on Friday, with slight gains coming amid relief for US stock futures.

An uptick in risk assets came after President Donald Trump extended a deadline for potential strikes on Iran’s energy infrastructure by ten days.

BTC now eyes a push back toward $69,000, signaling potential stabilization.

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Santiment says BTC is flashing a textbook buy signal

Bitcoin’s retest of $68,000 aligns with what on-chain analytics firm Santiment highlights as a surge in retail bearishness.

Yet it’s this outlook that analysts say could count as a classic contrarian indicator.

Social media chatter shows the crowd amplifying fear, uncertainty, and doubt (FUD) around Bitcoin and altcoins, with sentiment hitting lows not seen recently.

Why does this matter?

According to Santiment, cryptocurrency prices often defy public narratives.

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“Historically, prices move opposite to the crowd’s narrative,” the firm notes.

This means that the current spike in pessimism could read as a robust buy signal.

It’s a textbook contrarian outlook where bearish chatter highlights potential bottoms, while bullish retail discourse often marks tops.

Santiment says optimistic terms like bounce, recovery, accumulating, or buying typically signal a sell opportunity.

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Meanwhile, crowd chatter dominated by words such as dip, pullback, or bloodbath often signal buying opportunity.

Bitcoin price technical analysis

Over the past 24 hours, Bitcoin’s price action has mirrored broader market volatility.

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The asset plunged to intraday lows near $68,500, retracing to weekly support levels and transforming the $72,000–$75,000 band into a formidable supply zone.

Current price levels mark a 4% weekly decline, reflecting investor caution.

From a technical perspective, Bitcoin presents a bullish setup amid the pullback.

The weekly RSI has dipped into oversold territory, hinting at exhaustion selling. Support at $68,000 aligns with the 200-week EMA, a prior accumulation and resistance zone.

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The MACD indicator shows the histogram is flattening and there’s a hint of a bullish crossover.

On the upside, a retest of $70,000 brings $72,000 into view.

Short-term, the $75,000 supply zone could cap bulls’ move – unless they breach the level on increased volume amid de-escalation news. Broader forecasts point to $80,000 as a target for bulls.

On the downside, bears may fancy $65,000. However, they face a robust support base near the $60,000 mark.

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Crypto World

Stablecoins Do Not Threaten Banking Just Yet: Analyst

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Stablecoins Do Not Threaten Banking Just Yet: Analyst

The impact of stablecoins on the banking sector appears “limited” at the current phase of the adoption cycle, but banks could face increasing competition and an erosion of market share as the stablecoin sector and tokenized real-world assets (RWAs) grow in market capitalization. 

“So far, the use of stablecoins remains limited, but their market capitalization exceeded $300 billion at the end of last year,” Abhi Srivastava, associate vice president of Moody’s Investors Service Digital Economy Group, told Cointelegraph.

The stablecoin market cap has surged past $300 billion. Source: RWA.xyz

The role of stablecoins in payments, cross-border commerce and onchain finance is “expanding,” despite their currently limited role, Srivastava said, adding that existing payment systems in the US are already “fast, low-cost and trusted.” He said:

“For the banking sector, at this stage, disruption risk appears limited. In the near term, US rules that prohibit stablecoins from paying yield mean they are unlikely to replace traditional deposits at scale domestically.”

However, over time, growing adoption of stablecoins and tokenized RWAs, traditional or physical financial assets represented on a blockchain by a token, could place “pressure” on the banking sector, leading to deposit outflows and reduced lending capacity, he said.

Stablecoin regulatory policy has become a hot-button issue among crypto industry executives and those in the banking sector, with fears that yield-bearing stablecoins could erode banking market share proving to be a stumbling block for the CLARITY crypto market structure bill in Congress. 

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Related: Stablecoins behave like FX markets as liquidity splits: Eco CEO

CLARITY Act stalled, as banks fight yield-bearing stablecoins

The Digital Asset Market Clarity Act of 2025, also known as the CLARITY Act, is a comprehensive crypto market regulatory framework that establishes an asset taxonomy, regulatory jurisdiction and oversight over the crypto markets.

The CLARITY crypto market structure bill. Source: US Congress

It is now stalled in Congress after a group of crypto industry companies, led by cryptocurrency exchange Coinbase, publicly stated opposition to earlier drafts of the bill.

A lack of legal protections for open-source software developers and a prohibition on yield-bearing stablecoins were among some of the most contentious issues cited by crypto industry opponents of the legislation.

Several attempts have been made by US lawmakers and the White House to negotiate a bill acceptable to both the crypto industry and the bank lobby.

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Earlier this month, North Carolina Senator Thom Tillis said he plans to release an updated draft bill proposal that would be acceptable to both sides; however, the bill has reportedly received pushback, according to Politico, and has yet to be publicly released. 

However, other crypto industry executives and market analysts have warned that if the CLARITY Act fails to pass, it could open the crypto industry up to future regulatory crackdowns by hostile lawmakers and officials.

Magazine: Stablecoins will see explosive growth in 2025 as world embraces asset class