- Bitcoin’s Fear and Greed Index has dropped to “Extreme Fear,” raising speculation about a potential price rebound.
- Analysts remain divided, with some predicting a prolonged bearish phase while others expect a strong recovery.
- Bitcoin struggles below the $85,502 resistance; a breakout could push it to $90K, while a drop below $78,258 signals further decline.
Bitcoin Fear and Greed Index has again fallen to “Extreme Fear” that has raised eyebrows among investors. Mags stressed in an X post for the community that usually Bitcoin bounces back after touching this level. The last such occasion was in September 2024 when the price of Bitcoin was at $54,000 before shooting up by over 100%. This raise the question in the mind of many traders whether that kind of a recovery can still be witnessed in future.
Bitcoin’s Bearish Market Outlook
Nevertheless, there are still some analysts who are skeptical about the prognosis of Bitcoin. Ki Young Ju of CryptoQuant has yet another bearish view as he believes that this period is no longer a bull cycle. From the assessment by Ju, it was established that Bitcoin can possibly remain stagnant or even drop for between 6 to 12 months. He opined that several key on-chain indicators suggest a weakening market. With new money no longer flowing into the ecosystem many of these new whales are rather disposed to dumping their stocks at lower prices.
This market instability has been clearly demonstrated by BTC current price volatilities. This has been rejected at the 200-day Exponential Moving Average at around $85,502 and has not been able to rise much above this for the past 5 trading days. This level is also near the daily resistance area as defined by the green ‘zone’ at around $85,000 and is hence a crucial level for BTC.
Key Levels for Bitcoin
Macroeconomic analysis to some extent relies on the presence of trends but the current situation does not show strong trend in any direction. This is a technical reason as well as the Relative Strength Index (RSI) is below its midpoint of 50 which points to weak buying signals. However, a death cross has formed and it shows a bearish sign because the price of Bitcoin formed a low low on 11th March, while RSI formed a higher low for the same period. Such a pattern is typical of potential changes of direction or at least in the near future, an upward movement.
If the price rises above the 200-day EMA at $85,502, it can go further up to $90k. This would confirm the buy signal and instigate a fresh rise to new high levels of the United Steelmakers share price. On the other hand, if the Bitcoin breaks down below $78,258, which was the price on February 28, there will be a bears run down to $73,072.
As Bitcoin has stayed close to the key price level, people are waiting for an important reaction to that level. Whether it is going to bounce back or fall in the future depends on overall stock market performance and market sentiment in the future weeks.
