The market has been range-bound for over two weeks, a setup that historically hints at some directional bias. That said, things are starting to shift, leaving traders wondering where support might finally stabilize.
Since the late Q4 rally, Bitcoin [BTC] has been consolidating for more than six weeks, bouncing between $85k and $90k. While BTC did manage to rally past $97k, the momentum didn’t last.
Instead, the subsequent correction erased all of those gains, and even worse, it couldn’t hold its earlier range. Liquidity unwind added pressure, while the Fear and Greed Index kept traders on edge, making the next move even more uncertain.
Source: TradingView (BTC/USDT)
If Bitcoin follows this playbook, the next meaningful move could come by the end of March, assuming BTC can hold above the $65k level. Strong accumulation at this point would help reinforce that level as a solid bottom.
That said, conviction still looks thin. On-chain metrics show little sign of institutional interest, with BTC ETFs continuing to see net outflows. The Coinbase Premium Index is still in the red, signaling weak spot buying.
The bigger picture? The Fear and Greed Index tells the real story.
Fear and greed index highlights low risk appetite
The Fear and Greed Index is a useful metric for spotting tops and bottoms.
Historically, market bottoms tend to line up with the index dropping into ‘extreme fear,’ often forcing capitulation. When the index starts creeping back up toward the fear zone, it can signal that sentiment is shifting.
On the flip side, market tops usually coincide with the fear and greed index hitting greed or extreme greed levels. That’s when euphoria around BTC peaks, traders lock in profits, and the market sees healthy corrections.
Source: CoinMarketCap
This time, though, things looked different.
As Bitcoin reclaimed $97k, the index stayed stuck in the neutral zone, showing there wasn’t much aggressive accumulation at the top. Bears stepped in, and bids weren’t strong enough to handle the pressure from the liquidity unwind, letting the market slip back.
From a psychology perspective, this shows a clear lack of risk appetite among investors, further reinforced by weak dip buying. Looking at the Fear and Greed Index, the market still leans bearish, with consolidation favoring the bears and momentum staying under pressure.
Final Summary
- Neutral readings on the Fear and Greed Index show weak accumulation and low risk appetite, keeping momentum under pressure.
- BTC failed to hold $97k as liquidity unwind added pressure, leaving consolidation tilted in favor of the bears.
Source: https://ambcrypto.com/crypto-fear-greed-index-hits-extreme-fear-is-a-market-bottom-forming/
