- Bitcoin is holding around the $101.7K level.
- BTC’s trading volume has jumped by over 54%.
The bear trap has been tightening in the crypto market, with digital assets stuck in the red zone. Significantly, the fear and greed index value is settled at 20, exhibiting the broader fear sentiment on board. The largest asset, Bitcoin (BTC), reflects the downtrend in a serious tone, as a steady recovery is hard to make.
Even after a few price rebound moves, it confirms the negative trend. The high targets of BTC seem like fading and moving toward more losses. In the early hours, the asset traded at around $105,160. With the mighty bearish encounter, the price has fallen below the $100K, to the $98,962 range.
Meanwhile, the Bitcoin Fear and Greed Index is holding at 23, reporting extreme fear. At the time of writing, Bitcoin trades at $101,711, and the daily trading volume of the asset has increased by over 54.88%, reaching the $118.79 billion mark. As per Coinglass data, the market has experienced a 24-hour liquidation of $518.67 million worth of Bitcoin.
Can Bitcoin Escape the Bear Grip, or Is More Downside Coming?
Both the Moving Average Convergence Divergence line and the signal line of Bitcoin are positioned below the zero line, which indicates that the overall trend is bearish. If the MACD crosses above the signal line, the momentum is still weak unless the lines move back above zero.
In addition, the capital flow of BTC is worth noting, with the Chaikin Money Flow (CMF) indicator at 0.07, suggesting mild buying pressure in the market. This is not a strong bullish signal, but it shows accumulation. Notably, a drop below 0 would likely hint at selling pressure.
Bitcoin is currently trading on the downside, facing difficulty in regaining the upward momentum. If the bears triggered further losses, it might fall below the $101.7K support range. The death cross emergence could initiate a potential drop toward its former lows.
Assuming a bullish reversal for Bitcoin, the price might climb and find the nearest resistance. Upon the bulls gaining more traction, it could break the $101,725 level. With the golden cross taking place, the price movement of the asset is expected to reclaim its recent highs.
BTC’s daily Relative Strength Index (RSI) is found at 30.52 signals that it is very close to the oversold zone. With strong selling pressure, if it drops below 30, the asset may be undervalued and due for a bounce or reversal. Furthermore, the Bull Bear Power (BBP) value of Bitcoin at -4,700.27 implies that bears are currently in control of the market. The negative value shows that the price is trading below. Also, the larger the negative number, the stronger the bearish pressure gets.
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