Bitcoin slipped back below the $90,000 mark as market sentiment plunged to one of its weakest levels in months, with the Fear & Greed Index signaling “extreme fear.”
In the battle between the bulls and bears, Bitcoin appears to be succumbing to pressure from the bears, as it trades at $89,504 at the time of writing.
This comes as the Fear and Greed Index is at 21, down from 10 before. Many investors have reportedly become careful after the big crash on October 10.
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According to recent market data, the October 10 crash was the main reason sentiment fell to record lows of 10, triggered by surprise U.S.–China tariff war news.
Recall that news of renewed economic tensions between the two global powers sent shockwaves across financial markets, with investors fleeing riskier assets including cryptocurrencies, amid fears of a deeper global slowdown.
Due to this crash, crypto order books became very thin. Market makers removed liquidity to avoid more losses, ETF inflows turned into outflows, and global demand for digital assets weakened. With most investors staying cautious, fear has dominated the market for several weeks.
Though markets have stabilized somewhat as the crypto greed & fear index has climbed slightly to 21, the market is still deep inside the fear zone.
In a December 5 post on the social media platform X, Alphractal CEO and founder shared insight into the latest Bitcoin price decline below $90,000. The on-chain expert revealed that losing the $89,800 level is the more relevant occurrence in the latest price downturn.
In a previous post on X, Wedson evaluated the likely trajectory of the Bitcoin price should it lose the $89,800 level. The crypto pundit revealed that losing this price mark could lead to an accumulation pattern for the bulls or a redistribution phase for the bears.
While the accumulation period for the bulls would initially coincide with lower prices, it eventually leads to a Bitcoin price return to above the latest local high. Meanwhile, a redistribution phase could see the bears push the flagship cryptocurrency to around the $70,000 mark.
According to the Alphractal CEO, the price of BTC also failed to hold the key on-chain levels, strengthening the probability of a broader price sideways phase. “Sideways action is the cause — the big pumps or dumps are just the effect,” Wedson had earlier stated in his previous X post.
Furthermore, Wedson noted that the next level to watch is $86,500, which, if lost, opens the very high possibility for the formation of a new local low around $80,500. This local low could provide a perfect spot for investors to buy the dip and enter the market.
Several analysts still expect more downside. A popular chart analyst, Ali Martinez, also pointed out another worrying sign, Bitcoin has dropped below its 730-day simple moving average (SMA), a level that has often marked the start of long bearish periods in the past.
This important support is around $82,150, and if Bitcoin closes below it, the charts may turn even more negative. A deeper breakdown could push the price toward the $76,000 zone next.
The December 10–11 pivot will be crucial in determining whether this is another drop or the start of a real bottom. Analysts warn BTC may dip further, following bearish patterns, possibly continuing until a true bottom forms in 2026. A move back above $96,000–$106,000 is needed to confirm recovery momentum.
Outlook
In the short term, the outlook remains bearish to neutral, with analysts expecting additional volatility and possible retests of lower support zones.
However, over the long term, the broader Bitcoin narrative remains intact. Institutional adoption, expanding global interest in digital assets, and the gradual effects of Bitcoin’s halving cycle continue to support a bullish macro outlook. A sustained move above $96,000–$106,000 would likely confirm the beginning of a new upward phase.