Bitcoin Faces Pressure as fear Dominates Market Sentiment
Bitcoin (BTC) is struggling too break above the $85,000 mark, trading at $84,000 on Monday. This price is 13.4% higher than its lowest point this month. The crypto market’s hesitation reflects broader economic concerns.
Donald Trump’s decision to exempt items like smartphones from new tariffs initially boosted stocks. however, the Nasdaq 100’s gains were short-lived, rising by only 90 points after an earlier surge of over 500 points. This volatility mirrors the cautious stance of Bitcoin investors.
Investor sentiment remains wary. Spot Bitcoin ETFs saw outflows of $713 million last week, following a $172 million loss the week before. The crypto fear and greed index is at 27, signaling “fear,” while CNN Money’s index is at 21, indicating “extreme fear.” These levels suggest risk-averse behavior.
Futures open interest has stagnated at $56 billion,showing weak demand. Technically, Bitcoin is under pressure near $84,400, below the 50-day and 200-day Exponential Moving Averages. A death cross could form, signaling further declines.
bitcoin is also below a descending trendline connecting major highs since January 20. If it breaks this trendline and the moving averages, a bullish reversal might occur. Otherwise, sellers could target the $76,800 support level.
