as bitcoin BTC$89,899.38 Market sentiment is once again in extreme fear as it struggles to sustain $90,000.
Over the past year, fear or extreme fear accounted for more than 30% of all measurements on the Crypto Fear and Greed Index. The index is currently at 17, firmly within the extreme fear section.
Bitcoin has fallen 36% from its all-time high in October, and fear has dominated sentiment since the October liquidation crash more than two months ago. Meanwhile, the crypto market has yet to make a meaningful recovery. Bitcoin is currently trading nearly 30% below its all-time high, and investors remain cautious.
A similar disconnect is occurring in U.S. stocks. According to CNN's Fear and Greed Index, sentiment is currently at 42 indicating fear, even though the S&P 500 index is hovering around 6,827, just a few percentage points below its all-time high.
Fear continues to dominate investor sentiment in both US stocks and cryptocurrencies.
Bitcoin entered a death cross in November, a technical pattern where the 50-day moving average falls below the 200-day moving average. In this example, the death cross matched the local bottom around $80,000 on November 21st. Notably, all death crosses during the current market cycle since 2023 have marked significant local bottoms, reinforcing its relevance as a contrarian indicator in this cycle.
