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Bitcoin price remains under pressure below the 50-day moving average, reflecting cautious sentiment among investors. The crypto fear and greed index continues to hold steady in the fear zone, indicating a risk-averse market environment.

Bitcoin Price Update

On Monday, Bitcoin was trading at $84,000, just below the critical resistance level of $85,000. Despite being approximately 13.4% higher than its lowest level this month, the cryptocurrency has struggled to maintain upward momentum.

The recent price movement coincided with news of Donald Trump’s decision to exempt specific items, such as smartphones and electronic goods, from newly announced tariffs. While this announcement initially boosted equity markets, gains were short-lived. For instance, the Nasdaq 100 index rose over 500 points but closed up by only 90 points.

Investor Sentiment and Market Dynamics

A significant factor contributing to Bitcoin’s underperformance is cautious investor sentiment. Many traders remain on the sidelines, avoiding substantial exposure during uncertain market conditions. Spot Bitcoin ETFs experienced outflows exceeding $713 million last week, following $172 million in outflows the previous week.

The crypto fear and greed index, a widely followed sentiment tracker, remains in the “fear” zone with a score of 27. Similarly, the CNN Money index shows even lower levels of “extreme fear” at 21. Historically, such readings suggest that investors prefer safer assets and are hesitant to invest in riskier options like cryptocurrencies.

Additionally, Bitcoin futures open interest has shown little change recently. Data from CoinGlass indicates that open interest remains stagnant at $56 billion, reflecting weak demand and low conviction among futures traders.

Bitcoin Price Technical Analysis

From a technical perspective, Bitcoin’s price action underscores ongoing challenges. The daily chart reveals the coin is under pressure, with its price stalling around $84,400. This level lies just below both the 50-day and 200-day Exponential Moving Averages (EMAs). If these two EMAs form a death cross—a bearish technical signal—it could suggest further downside for Bitcoin.

Moreover, Bitcoin continues to trade beneath a descending trendline that connects key swing highs since January 20. It is approaching the lower boundary of its trading range, defined by Murrey Math Lines, which highlights a potential risk of further declines.

Key Levels to Watch

Traders should monitor the following levels closely:

  • If Bitcoin breaks below the double-bottom support at $76,800, sellers may gain momentum, pushing prices lower.
  • On the flip side, a breakout above the descending trendline and both EMAs could invalidate the bearish signals, including the death cross setup. Such a move may pave the way for a potential bullish reversal.

Overall, Bitcoin’s price remains at a critical juncture. The interplay between technical indicators and investor sentiment will likely determine its next move. Traders and investors are advised to stay informed and carefully assess market developments.

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