Bitcoin’s price has fallen significantly from its record high of $126,000 reached two weeks ago, now hovering around $104,000. This decline has persisted for several days, pushing investor sentiment to its most cautious level in months. Currently, Bitcoin trades near $105,485, though some exchanges recorded a dip as low as $103,516 earlier in the day. According to the Bitcoin Fear and Greed Index, investor sentiment has dropped to 22 out of 100, indicating an “extreme fear” state. This index ranges from 0 to 100, where lower scores reflect fear and higher scores indicate greed.
Last week, Bitcoin and other cryptocurrencies plunged following the U.S. president’s announcement of 100% tariffs and export controls in response to China’s new trade restrictions. This led to a 12% drop in Bitcoin’s price and declines of up to 40% in other major cryptocurrencies. Technical analysis signals a clear bearish trend; the Relative Strength Index (RSI) has fallen to 37, while the Average Directional Index (ADX) stands near 25.23, suggesting mild bearish momentum. Short-term charts further point to continued weakness, with a “death cross” technical pattern emerging, often seen as a long-term bearish indicator.
Periods of “extreme fear” in the market are commonly associated with oversold conditions, where investors reduce their risk exposure. Historically, such fearful moments sometimes precede market bottoms, though predicting the future remains challenging. Global economic uncertainty and geopolitical tensions have also increased pressure on risk assets, aligning Bitcoin’s downward trend with broader market weaknesses. Meanwhile, gold prices are reaching new highs this year, outperforming Bitcoin.
This situation highlights ongoing uncertainty in the crypto market, urging investors to exercise caution as the risk of further price declines persists.
