Bitcoin (BTC) remains under strain, struggling to sustain a move above $90,000 as market sentiment slides back into extreme fear.
Over the past 12 months, fear and extreme fear have made up more than 30% of readings on the Crypto Fear and Greed Index. The index is currently at 17, firmly within extreme fear territory, highlighting persistent investor unease.
Sentiment has stayed weak since the October liquidation-driven selloff, which saw bitcoin retreat roughly 36% from its all-time high. Despite some stabilization, the broader crypto market has yet to mount a convincing recovery, with bitcoin still trading nearly 30% below its peak.
A comparable disconnect is emerging in U.S. equity markets. The CNN Fear and Greed Index is at 42—signaling fear—even as the S&P 500 trades around 6,827, only a few percentage points below record levels.
Across both traditional financial markets and digital assets, fear continues to dominate investor psychology.
From a technical perspective, bitcoin entered a death cross in November, when the 50-day moving average fell below the 200-day moving average. In this case, the signal coincided with a local bottom near $80,000 on Nov. 21. Notably, every death cross during the current market cycle since 2023 has marked a meaningful local low, reinforcing its role as a contrarian indicator.
