The cryptocurrency market is currently experiencing a sharp downturn in Bitcoin sentiment, with the Bitcoin Fear & Greed Index dropping to just 10. This is the lowest reading since February and signals extreme fear among investors. According to analysis from 10x Research, Bitcoin's price has fallen below both its 7-day and 30-day moving averages, indicating weak momentum in both the short and medium terms. Over the past week, the leading cryptocurrency has lost 6.7%, with its price dropping below the $100,000 threshold.

Several key factors are driving this decline. Large holders, known as “whales,” have been offloading their positions, contributing to downward pressure. At the same time, U.S. spot Bitcoin ETFs have recorded significant outflows, reflecting waning institutional interest. Bitcoin’s persistent negative correlation with the Nasdaq 100 has further increased its volatility; it tends to fall more sharply during tech stock sell-offs than it recovers during rallies. When Bitcoin’s price slipped below $95,000 on Friday, discussion surrounding the cryptocurrency spiked to a four-month high, according to analytics platform Santiment. Such surges in conversation often signal heightened fear, uncertainty, and doubt (FUD) among retail investors. Historically, extreme panic has often coincided with market lows, suggesting that selling pressure may be peaking and a potential reversal could be approaching.

In a related technical development, Bitcoin has formed a new “death cross.” Although the term sounds alarming, it is generally regarded as a lagging indicator within technical analysis. Analyst Benjamin Cowen notes that death crosses have frequently aligned with local market bottoms, hinting at potential short-term support. However, Cowen also issues a warning: if the current market cycle is nearing its end, any bounce following this death cross may ultimately fail. He stresses that if Bitcoin is going to rebound within this cycle, early signs should appear within the next week. If no rebound emerges, it would likely point to further downside before a more meaningful rally possibly targets the 200-day moving average, which would then form a macro lower high — a critical point in the market cycle.