- Bitcoin has dropped below $90,000 as the Fear & Greed Index falls to 15, showing extreme market fear.
- El Salvador bought 1,098 BTC in a week, raising its total to 7,474 BTC despite bearish sentiment.
- Mt. Gox moved 10,423 BTC ($936M), increasing market uncertainty during the downturn.
- BTC is trading at $89,549, with bearish indicators pointing to a possible drop toward $83,000 if support breaks.
Bitcoin faces immense selling pressure due to fear spreading across the cryptocurrency markets. The Crypto Fear and Greed Index stands at 15, a point that indicates extreme fear. Bitcoin’s price action finds it below the price of $90,000 after a period of solid growth. Despite the markets being bearish, El Salvador made a major purchase.
Source: CoinMarketcap
El Salvador Buy Over 1,000 BTC in a Week & Mt. Gox Moves $936M in BTC
Recent information provided by the Ministry of Finance indicates that El Salvador increased its BTC supply by an additional 1,098.19 BTC during the last seven days. This brings the state’s accumulation of BTC so far to 7,474.37 BTC, which amounts to a price of approximately $685 million. Within the last 30 days, the state acquired an additional BTC supply of 1,121.19.
More importantly, Mt. Gox transferred 10,423 BTC valued at approximately $936 million after eight months of being inactive on the platform. This sudden transfer of funds brings more turmoil on an already unstable environment.
Source: Arkham
At the time of writing, Bitcoin is trading at $89,549 and is down 6% over the last 24 hours. This deepens its weekly loss to 14%. However, trading volume has surged to $110.07 billion, jumping 44%, which suggests selling pressure may be cooling as buyers and sellers actively reposition.
Related Reading: Bitcoin’s Bearish Bite: Price Drops to $92,000 Amid Panic Selling
Bitcoin Short-Term Bearish, Long-Term Still Strong
Bitcoin’s weekly chart shows a clear pullback. The price has moved below the 20-week and 50-week moving averages and is now sitting on a key support area around $89,000 to $90,000 near the 100-week moving average.
The RSI is at 37, and the MACD remains strongly bearish, confirming downward momentum. If Bitcoin fails to hold this support, the next demand zone sits near $83,000.
Source: Tradingview
Despite this, the long-term trend stays positive as long as Bitcoin holds above the 200-week moving average near $55,000. For a real recovery to begin, buyers need to push the price back above $102,000. Overall, the short-term view is bearish, but the long-term structure remains strong.
Related Reading: Bitcoin’s Price Drop Linked to Short-Term Holder Capitulation
