Bitcoin's price has been facing significant pressure as the overall crypto market sentiment remains weak. The total market capitalization has dropped to approximately $3.25 trillion, showing a slight decline of nearly 1%.
While Bitcoin remains near the $96,000 mark, it has been grappling with weekly losses, and altcoins are showing even less confidence. Despite this, a notable technical signal, the Death Cross, has recently appeared on Bitcoin’s chart.
According to analyst Colin, while the Death Cross is often seen as a bearish indicator, the current market conditions could turn this signal into a potential bullish catalyst. Historically, Death Cross patterns have tended to emerge near market bottoms, signaling that the worst might be over.
In Bitcoin’s case, it has entered a crucial support zone at the lower edge of its long-term channel. This region has a history of fostering strong recovery, leading some to believe that the price may soon rebound.
Analyst Perspective: A Possible Reversal or Temporary Relief?
Even though the Death Cross typically signals market weakness, analysts are cautiously optimistic about Bitcoin’s potential for an imminent bounce. The current price action is happening within a critical support level, and this has raised expectations for a short-term recovery.
Despite the lingering uncertainty, many are hoping that this could mark a turning point, with some anticipating that Bitcoin may rise toward resistance levels between $96,764 and $99,644.
On the macroeconomic front, a major catalyst could come from the Federal Reserve’s policy shift. With the end of quantitative tightening (QT) expected soon, there’s a growing sense that this could bring renewed support for digital assets, including Bitcoin. Historically, a move away from tightening policies has benefited the crypto market, and this shift could encourage investors to push prices higher.
Extreme Fear Grips Market Sentiment
Bitcoin’s recent drop to around $95,000 has pushed market sentiment into extreme fear. The Fear & Greed Index has plummeted to 10, one of its lowest readings in recent memory. This indicates that investors are highly cautious, and many are waiting for signs of stabilization before re-entering the market.
Despite this, there are indications that Bitcoin may have reached a short-term low, which could lead to a modest recovery. However, the key question remains whether this will lead to a new upward trend or simply provide temporary relief.
While Bitcoin’s price is slowly moving towards resistance levels, it is still unclear if the market will see a strong bullish confirmation. If the price fails to break through the resistance, there may be further declines, potentially revisiting the $91,000 region. As the market continues to navigate these uncertain waters, many are closely watching the next few days for any signs of recovery.