The price of Bitcoin (BTC) has fallen sharply again and was even briefly below the psychologically important limit of 90,000 dollars. At the same time, fear is growing among investors. Will the price fall further?
Bitcoin price drops below $90,000
The Bitcoin price stood at a price of approximately $89,600 this morning. It is the lowest level since April. By the way, all profits from 2025 have also been wiped out. So we started the year with a price of around $93,000.
The crash comes just six weeks after the new all-time high of over $126,000. Since then, sentiment has completely turned around. According to the Fear & Greed Index, an indicator that measures market sentiment, the meter is currently at 11, which indicates ‘extreme fear’.
Bitcoin Under Fire After Death Cross
The fear is partly caused by the fact that a death cross has been confirmed. This is a technical pattern that occurs when the 50-day moving average falls below the 200-day average. The question now is whether this marks a local bottom or the start of a long-term downward trend.
In addition, institutional investors continue to increase the selling pressure. The well-known Dutch analyst Ted Pillows points to the Coinbase Bitcoin Premium Index for this. This is an indicator that shows whether the Bitcoin price on Coinbase is higher or lower than on other major exchanges, such as Binance.
The current negative difference (the red zone) suggests that there is relatively more selling pressure on Coinbase, a platform widely used by US institutions. This means that they may sell their Bitcoin en masse.
It is also doom and gloom for the American Bitcoin spot exchange-traded funds (ETFs). Institutions typically invest significant amounts of BTC here, but a total of around $1.82 billion has flowed out of these funds over the past four trading days.
How low can BTC drop?
According to analyst Ali Martinez, there are several key price points that investors should pay attention to. Based on the MVRV Extreme Deviation Pricing Bands, a model that shows how much the Bitcoin price deviates from the average value at which investors bought their BTC, the next support point is around $75,740. That means a possible decline of about 15.5 percent from the current price.
It could be worse. Martinez also mentions possible support levels around $56,000 and even $52,000 if the downtrend continues.
Source: https://newsbit.nl/bitcoin-zakt-onder-90-000-dollar-death-cross-zorgt-voor-extreem-angstig-sentiment/
