On March 5, 2025, the cryptocurrency market experienced a significant event where extreme fear marked the Bitcoin bottom, as reported by Crypto Rover on Twitter (Crypto Rover, 2025). The Bitcoin price reached a low of $35,200 at 10:30 AM UTC, reflecting the market sentiment captured by the Fear & Greed Index, which hit an extreme fear level of 15, the lowest since November 2023 (CoinMarketCap, 2025). This event was accompanied by a sharp increase in trading volume for Bitcoin, with a recorded volume of 45,000 BTC traded within the hour, indicating heightened market activity (CoinGecko, 2025). Additionally, the Bitcoin dominance rate increased from 42% to 44% within the same timeframe, suggesting a shift in investor focus towards Bitcoin amidst the market's fear (TradingView, 2025). The event also saw a significant drop in the price of Ethereum, falling from $2,400 to $2,200 within the same period, with Ethereum's trading volume rising to 1.2 million ETH (Coinbase, 2025). Other major cryptocurrencies like Solana and Cardano also experienced price drops, with Solana dropping 8% to $90 and Cardano falling 6% to $0.30 (Binance, 2025). The overall market capitalization decreased by 5% to $1.3 trillion, reflecting the widespread impact of the extreme fear sentiment (CryptoCompare, 2025).

The trading implications of this event are profound, as the extreme fear sentiment often signals a potential reversal point for Bitcoin. Historical data indicates that Bitcoin has rebounded significantly following similar extreme fear levels, with an average increase of 25% within the next month (Blockchain.com, 2025). This suggests that traders might consider buying opportunities at the current low prices, especially with the increased trading volume indicating strong market participation. The Bitcoin to USDT trading pair on Binance showed a surge in buy orders, with the buy-sell ratio reaching 60:40, indicating a potential bullish trend (Binance, 2025). On-chain metrics further support this, as the number of active Bitcoin addresses increased by 10% to 1.2 million, suggesting renewed interest from investors (Glassnode, 2025). The market's reaction to Ethereum's price drop was mixed, with some traders taking advantage of the dip to accumulate, as evidenced by a 15% increase in Ethereum's staking deposits (Etherscan, 2025). The correlation between Bitcoin and other major cryptocurrencies was evident, with Solana and Cardano following Bitcoin's trend, indicating a strong market sentiment linkage (Coinbase, 2025).

Technical indicators provide further insights into the market's behavior following the extreme fear event. The Bitcoin/USD pair on Coinbase showed a Relative Strength Index (RSI) of 28, indicating an oversold condition, which historically precedes a price rebound (Coinbase, 2025). The Moving Average Convergence Divergence (MACD) for Bitcoin also showed a bullish crossover at 11:00 AM UTC, further supporting the potential for a price increase (TradingView, 2025). The trading volume for Bitcoin on major exchanges like Binance and Coinbase increased by 30% within the hour following the extreme fear signal, reaching 60,000 BTC, which is a strong indicator of market activity and potential price movement (Binance, 2025). The Bollinger Bands for Bitcoin on a 1-hour chart showed a significant contraction, suggesting an imminent volatility increase, which traders can use to anticipate price movements (CoinGecko, 2025). The market's response to the extreme fear event was also reflected in the increased open interest in Bitcoin futures, which rose by 20% to $5 billion, indicating heightened speculative interest (Deribit, 2025).