Bitcoin’s market is flashing warning signs as greed hits extreme levels, with the Fear & Greed Index at 84—often a signal of a possible price drop. On-chain data, like the Sell-Side Risk Ratio and Net Taker Volume, adds to the concerns, hinting that a market top might be near.
What happens next could depend on key U.S. inflation reports, like the CPI and PPI, set to be released this week, which might influence Bitcoin’s next big move. The wave of negative sentiments clouded Bitcoin which fell 0.4% to $99,439 in just a few hours.
Bitcoin Entering “Death Zone”
Analyzing the current scenario, 10X Research analysts warn investors to stay alert.
The report highlighted that Bitcoin is nearing what could be called its “death zone,” a term borrowed from mountaineering to describe altitudes above 8,000 meters, where survival becomes increasingly difficult due to lack of oxygen. Similarly, Bitcoin’s price seems to be entering a critical phase, with market indicators suggesting that the “air” is getting thinner, signaling a potential slowdown.
Over the past two weeks, Bitcoin has traded within a tight range, forming a Doji candlestick pattern—a classic indicator of market indecision. This pattern often precedes a consolidation phase, but 10x Research points out that deeper signals suggest the market could be teetering on the edge of a correction. Declining trading volumes and weakening buying interest at higher levels are red flags that Bitcoin might struggle to sustain its $100k position.
Technically, Correction on Cards?
However, a deeper dive into on-chain metrics and the broader market structure reveals more concerning signals. As Bitcoin’s momentum slows, caution is advised. On-chain data points to an increasing risk of a correction, especially given the declining volume and the lack of significant buyer interest at higher levels. Plus, with market sentiment beginning to shift and key support levels under pressure, Bitcoin may face a difficult path ahead.
Despite the potential risks, the report doesn’t suggest that Bitcoin has reached its peak. Instead, it highlights the importance of careful monitoring in this stage, where the market could either consolidate or face a downturn. The coming days will likely be critical in determining whether Bitcoin can maintain its upward momentum or if the “death zone” will trigger a more significant correction.
Bitcoin Price Today
Supporting the bearish claims, Bitcoin’s 1.74% intraday pullback wiped $62.89 billion from the crypto market, bringing its total market cap to $3.55 trillion. A bearish reversal from a local resistance line suggests a potential 12% drop, targeting $87,680 as the next support.
Liquidations surged to $290 million, with $217 million in long positions wiped out, signaling increased selling pressure. While some traders maintain a bullish stance, the rising wedge pattern warns of further downside risks.
