Bitcoin (BTC) is showing signs of extreme volatility, with prices plunging over 9% in the past 24 hours, currently trading at $86,900 after rebounding from an intra-day low of $81,500. The cryptocurrency initially surged to $95,000, fueled by speculation over Trump's “Crypto Strategic Reserve”, but quickly reversed as selling pressure intensified.
Market sentiment has turned highly uncertain, with the Fear and Greed Index falling to 15, indicating "Extreme Fear" among investors. However, some analysts see a potential recovery, citing rare technical signals that have historically preceded major rallies.
Bitcoin's Open Interest Hits Six-Month Low – A Bullish Setup?
Despite its sharp decline, Bitcoin's open interest has dropped to a six-month low, a level last seen when BTC was trading between $50,000 and $60,000 before its surge toward $100,000.
Crypto analyst CrediBULL Crypto points out that this pattern previously signaled market bottoms, suggesting Bitcoin could be poised for a comeback.
- Bitcoin's funding rate has turned negative, an indicator that often precedes strong upward moves.
- Relative Strength Index (RSI) has dropped to 24, an oversold condition historically linked to price rebounds.
- Global liquidity is rising, and Bitcoin remains undervalued relative to macroeconomic conditions.
However, analysts caution that Bitcoin must reclaim key resistance levels to confirm a bullish reversal. BTC needs to break above $93,000 with strength for the uptrend to resume, while $94,900 remains a critical level for further momentum.
Bitcoin's Volatility Fueled by Trump's Crypto Plan and Market Uncertainty
Bitcoin's recent surge to $95,000 was initially driven by Trump's unexpected announcement of a “Crypto Strategic Reserve”, which aims to hold major digital assets like XRP, Solana, and Cardano. The initial omission of Bitcoin and Ethereum sparked confusion, but Trump later confirmed their inclusion, briefly boosting BTC's price.
China imposed tariffs as high as 15% on US exports in retaliation for the Trump administration's new levy, escalating a trade war between the world's two largest economies.
Meanwhile, Canada and Mexico also announced countermeasures against Trump's tariff increases. Trump… pic.twitter.com/0QSvI6RQow
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