Bitcoin (BTC) is again losing momentum, failing to hold above $90,000 as market sentiment slips deeper into extreme fear.
Data from the Crypto Fear and Greed Index shows that fear or extreme fear has dominated more than 30% of readings over the past year. The index currently sits at 17, placing sentiment firmly in extreme fear territory.
Investor caution has remained elevated since the October liquidation shock, when bitcoin dropped roughly 36% from its all-time high. The broader crypto market has yet to deliver a meaningful recovery, with bitcoin still trading nearly 30% below its peak.
A similar sentiment disconnect is visible in U.S. stock markets. The CNN Fear and Greed Index stands at 42—indicating fear—even as the S&P 500 trades near 6,827, just a few percentage points off record highs.
Across both equities and digital assets, fear continues to weigh heavily on investor behavior.
On the technical front, bitcoin formed a death cross in November, a pattern triggered when the 50-day moving average falls below the 200-day moving average. That signal coincided with a local bottom near $80,000 on Nov. 21. Notably, each death cross during the current market cycle since 2023 has aligned with a significant local low, reinforcing its standing as a contrarian signal in this cycle.
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