- Bitcoin is currently trading at around $77.6K.
- The market has seen $272.29M in BTC liquidations.
With the Fear and Greed Index value holding at 15, extreme fear sentiment is lingering across the crypto market, pushing the assets into the deep bearish zone. The largest and dominant token, Bitcoin (BTC), has fallen terribly below $80K. Escaping from the bear trap might be far more difficult with the mighty active bears.
As of February 2nd, the asset has posted a modest loss of over 0.89%, and the asset opened the day trading at around $78,802.27. As the potential bears gained more traction, the BTC price was pushed toward a bottom level of $74,551.33. Moreover, the Bitcoin Fear and Greed Index is settled at 14, which signals extreme fear.
At the time of writing, Bitcoin is trading within the $77,675.24 zone, and the daily trading volume has briefly lost ground, currently reaching the $73.38 billion range. In addition, the market has experienced a 24-hour liquidation event of $272.29 million worth of Bitcoin, as reported by the Coinglass data.
With the red chart, the Bitcoin price could fall to its support at around $77,429. A sturdy bearish correction might initiate the death cross to take place, and the bears may lead the asset’s price to $77,201. Assuming the ongoing momentum turns green, the BTC bulls might push the price up and test the resistance at $77,840. An extended upside pressure would trigger the golden cross to unfold, sending it to a range above $78K.
Bitcoin Faces Downside Pressure as Key Indicators Weaken
The BTC/USDT pair’s Moving Average Convergence Divergence (MACD) and signal lines are below the zero line, implying bearish momentum. The short-term trend is weaker than the long-term trend, and unless it shifts upward, the downside pressure may continue.
Besides, the Chaikin Money Flow (CMF) indicator is found at 0.02, which is slightly positive but very weak. There is a mild buying pressure in the Bitcoin market, with capital barely flowing into the asset. Also, the trend is leaning toward neutrality rather than turning bullish.
Bitcoin’s daily Relative Strength Index (RSI) of 28.03 indicates its oversold territory. Moreover, the market may be due for a short-term rebound, but the ongoing trend will remain bearish until the value starts moving back above key levels like 30–40.
The Bull Bear Power (BBP) reading of -3,165.36 suggests very strong bearish dominance. The sellers are in control of the market, and the bears are pushing the price sharply lower. Such large negative values hint at short-term bullish attempts, probably weak.
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Source: https://thenewscrypto.com/blood-red-candles-take-over-bitcoin-btc-can-it-defend-75k-amid-bearish-heat/
