Dip Buyers Step in as Bitcoin Stabilizes—Will the Trend Continue Over the Weekend?

Bitcoin Recovers to $84K, But Fear Lingers as Markets Brace for Weekend Volatility

Bitcoin (BTC) clawed its way back to $84,000 in early U.S. trading on Friday after plunging to the $78,000 range overnight. Despite the rebound, the world’s largest cryptocurrency remains down over 15% in just one week, reflecting the broader uncertainty gripping financial markets.

Sentiment remains deeply negative, with the Crypto Fear & Greed Index dropping to 10 overnight—its lowest reading since the 2022 bear market crash. Although the index has since risen to 16, it remains firmly in the “extreme fear” zone. Just last week, it was sitting at 55, signaling “greed.” The last time the index registered “extreme greed” (above 75) was around the time of Trump’s inauguration.

Meanwhile, the broader CoinDesk 20 Index is down 2% on the day, with most major cryptocurrencies in the red. The one exception is Solana (SOL), which is up 5% after CME Group announced plans to launch SOL futures on March 17. However, despite today’s gains, Solana remains 36% lower for the month and well below its pre-election levels.

Will Bitcoin See Another Weekend Sell-Off?

Unlike stocks and forex markets, which take a break over the weekend, crypto trades nonstop—and that has recently meant painful losses for traders.

Geoff Kendrick, an analyst at Standard Chartered, noted that weekends have been particularly rough for bitcoin in recent months. While last weekend saw a modest uptick, the trend before that was marked by steep declines.

This time, the focus is on President Trump’s escalating trade war. His administration has confirmed steep new tariffs set to take effect Tuesday—25% on Mexico and Canada, and 10% on China. The big question for traders: Has the market already priced in this risk, or is there more downside ahead?

A contrarian perspective suggests that the worst may already be reflected in current prices. With stocks tumbling alongside bitcoin this week, some analysts believe short sellers may be overextended. If there is any sign of a last-minute deal to delay or reduce tariffs, bears could be caught off guard, leading to a short squeeze rally.

As traders head into the weekend, volatility remains the only certainty.

Buckle up.