Bitcoin Market Plunges into Extreme Fear Territory
Bitcoin has entered a severe correction phase, with prices plummeting below $80,000 for the first time since November 2024. The leading cryptocurrency has shed nearly 18% since Monday’s high above $96,000, marking one of the most significant weekly declines in recent months. From its January all-time high of $109,588, Bitcoin has now corrected approximately 27%.
Multiple factors are contributing to the downward pressure, including newly imposed Trump tariffs affecting crypto markets, substantial outflows from spot Bitcoin ETFs, and widespread liquidations in futures markets. The Fear and Greed Index has plunged to 16, indicating “Extreme Fear” – levels not seen since the 2022 bear market bottom.
Technical Analysis Points to Critical Support Levels
Several prominent analysts have identified key technical levels that could determine Bitcoin’s next major move. Scott Melker, known as “The Wolf Of All Streets,” has spotted bullish divergences forming on multiple timeframes, particularly on the 4-hour chart. This technical pattern, combined with oversold RSI readings, historically signals potential trend reversals.
Technical analyst Tony Severino suggests a possible drop to $75,000, aligning with the 0.5 Fibonacci retracement level. He warns that breaching the monthly Parabolic SAR at $75,742 could trigger a deeper correction phase.
Massive Buy Wall Emerges on Binance
A significant development has emerged on Binance’s futures market, with approximately $1.8 billion in buy orders positioned between $70,000 and $79,000. While these orders could provide substantial support, traders should note that large order books can be dynamic and subject to rapid changes.
Market Liquidity and Consolidation Scenario
CryptoQuant CEO Ki Young Ju provides insight into the role of market liquidity, suggesting Bitcoin could enter an extended consolidation phase between $75,000 and $100,000. This range-bound activity might persist until new catalysts emerge to drive fresh capital into the market.
As some analysts maintain bullish long-term targets despite current market fear, the key focus remains on whether Bitcoin can hold critical support levels around $75,000. At press time, BTC trades at $78,856, with market participants closely monitoring volume profiles and order flow for signs of stabilization.