Bitcoin (BTC) Price Prediction: Bitcoin Bulls Watch $87K Support as Fear & Greed Index Hits Extreme Low

The cryptocurrency has been trading in a narrow range for several weeks, reflecting cautious investor sentiment. While reclaiming $90,000 could signal renewed bullish momentum, a breakdown below $87,000 may lead to a temporary pullback toward $84K–$85K. Observing intraday volume and price structure is crucial to understanding potential market shifts.

Bitcoin Struggles to Reclaim $90K

Bitcoin remains confined between $87,000 and $90,000. Crypto analyst Ted Pillows, known for short-term BTC technical analysis and a MEXC partner focused on on-chain and macro signals, noted, “$BTC is still stuck in the $87,000-$90,000 range. Until Bitcoin reclaims the $90,000 level, the upside is capped. If BTC loses the $87,000 zone, a revisit of the $84,000-$85,000 level is possible.”

Bitcoin remains trapped between $87K and $90K, with upside capped unless $90K is reclaimed and downside risk toward $84K–$85K if support breaks. Source: @TedPillows via X

Observing recent price action, BTC repeatedly rejected the $89K–$90K region on declining volume. This suggests that while buyers are defending $87K, conviction to push past $90K remains limited. Multiple intraday highs above $88,000 failed to hold, reinforcing the range-bound nature of the market over the past month.

Extreme Fear Signals Potential Opportunity

Market sentiment data highlights investor caution. The Fear & Greed Index has fallen to 23, indicating extreme fear. Crypto commentator Deadline (@cryptodeadline) explains that such conditions historically align with periods where cautious buying could be considered: “Market psychology is at a breaking point. While BTC was at $120K, everyone wanted in. Now, with extreme fear, there may be opportunity, but signals are not guarantees.”

Bitcoin faces extreme fear as the Fear & Greed Index hits 23, signaling caution while investors weigh potential opportunities near current levels. Source: @cryptodeadline via X

It’s important to note that while extreme fear can precede price rebounds, these patterns are probabilistic and not predictive. Traders should integrate this data with technical signals like support, resistance, and liquidity zones before making decisions.

Market Maker Activity and Liquidity Analysis

Technical observation suggests Bitcoin’s sideways movement is influenced by larger participants. TradingView analyst Behdark, who specializes in market structure and liquidity analysis, notes that banks and institutional players often target liquidity zones, areas where stop-loss orders cluster, to execute large trades efficiently.

Bitcoin’s sideways consolidation reflects market maker strategies, with liquidity zones guiding price moves and emphasizing the importance of strategic trading and psychology. Source: Behdark on TradingView

Liquidity zones are typically identified around repeated highs or lows on higher-timeframe charts. When price approaches these levels, temporary spikes or drops occur as larger participants enter or exit positions, creating the range-bound patterns observed in BTC.

A critical stop zone has been identified between $90,154 and $91,600. Until liquidity is gathered in this range, significant bullish breakthroughs may remain unlikely. This highlights the importance of observing both price structure and volume behavior in the current consolidation phase.

Strategic Approach for Traders

For short-term traders, the $87K–$90K range provides clear reference points: a break below $87K may indicate short-term downside toward $84K–$85K, while a move above $90K could trigger renewed upward momentum.

Long-term holders may view the current consolidation primarily as a reflection of sentiment rather than a structural change in Bitcoin’s trend. Monitoring liquidity zones, stop clusters, and overall market psychology can help investors anticipate potential volatility.

Behdark emphasizes, “Successful trading requires understanding both technical levels and the behavior of larger market participants. Enter trades with calculated risk-to-reward setups and avoid assuming any single signal is guaranteed.”

Final Thoughts

Bitcoin remains in a delicate phase. With $87K acting as a key support and market sentiment at extreme fear, caution is essential. Traders and investors should combine technical observation, liquidity analysis, and sentiment data to navigate potential price movements responsibly.

Bitcoin was trading at around 88,901, up 1.49% in the last 24 hours at press time. Source: Bitcoin price via Brave New Coin

While reclaiming $90K may restore bullish momentum, a drop below $87K could lead to a temporary pullback. For short-term traders, these levels define actionable risk zones, whereas long-term holders may see the consolidation as part of broader market cycles. Patience, strategic planning, and understanding institutional influences are key to managing positions in the current environment.