Bitcoin (BTC) remains under pressure, struggling to reclaim the $90,000 level as market sentiment sinks back into extreme fear.
Fear and extreme fear have accounted for more than 30% of readings on the Crypto Fear and Greed Index over the past year. The index is currently at 17, firmly within extreme fear territory, underscoring persistent risk aversion among investors.
Sentiment has stayed fragile since the liquidation-driven selloff in October, when bitcoin slid roughly 36% from its all-time high. The broader crypto market has yet to stage a sustained rebound, with bitcoin still trading nearly 30% below its peak, keeping caution elevated.
A similar divergence is evident in U.S. equities. The CNN Fear and Greed Index currently stands at 42—signaling fear—even as the S&P 500 trades near 6,827, just a few percentage points below record highs.
Across both traditional and digital asset markets, fear continues to dominate investor psychology.
From a technical standpoint, bitcoin entered a death cross in November, when the 50-day moving average fell below the 200-day moving average. In this instance, the signal coincided with a local low near $80,000 on Nov. 21. Notably, every death cross in the current market cycle since 2023 has marked a meaningful local bottom, reinforcing its role as a contrarian indicator.
