The cryptocurrency market is seeing its sharpest downturn in months as the Crypto Fear & Greed Index fell to 16, its lowest level since February 2025. The drop reflects extreme bearish sentiment as Bitcoin and major altcoins continue to slide.
The index’s weekly average also declined to 24, signalling sustained unease among investors. The fall comes as Bitcoin trades below key moving averages and triggers bearish technical indicators, including the MACD and RSI.
On-chain data shows deeper signs of capitulation. Long-term Bitcoin holders sold 815,000 BTC in the past 30 days—their largest monthly selloff since early 2024. At the same time, demand in spot markets has weakened and stablecoin liquidity growth has stalled. CryptoQuant’s Bull Score Index dropped from 80 in early October to 20, highlighting a significant shift in sentiment.
Analysts say the $100,000–$102,000 range is now critical support for Bitcoin. A break below this zone could accelerate losses, with some warning of potential declines toward $97,460 or even $94,253. The 50-week EMA near $100,862 offers only limited support.
However, not all analysts view the downturn negatively. Some believe extreme fear often precedes strong rebounds. Several experts note similarities to 2022, when panic selling marked the bottom before recovery began. Ethereum’s RSI is also approaching oversold conditions, hinting at possible stabilization.
Technical patterns show potential for a rebound if key levels hold. Bitcoin’s 4-hour chart displays a falling wedge that could lift prices to $120,000 if resistance at $105,000 breaks. A larger bullish wedge on the daily chart points to a possible retest of October’s high at $126,000, provided the $100,000 support level remains intact.
For now, analysts say the market remains highly uncertain. Investors are watching blockchain data, major support zones, and institutional flows for signs of a bottom. The sharp drop in the Fear & Greed Index highlights the market’s emotional volatility as traders weigh whether the latest capitulation signals deeper losses or the start of a new recovery phase.
