Bitcoin is showing signs of renewed weakness, with the price hovering near $84,000 and analysts warning of a possible “death cross” formation—a bearish technical signal that occurs when the 50-day moving average crosses below the 200-day average. At the same time, investor sentiment remains muted, with both the Crypto Fear & Greed Index and ETF flows indicating growing caution in the market.
Caution Dominates Despite Policy-Driven Optimism
Earlier optimism following President Trump’s temporary exemption on tariffs for electronics gave a brief boost to equities, but the gains proved short-lived. Bitcoin failed to sustain upward momentum, remaining below key resistance at $85,000—a level it has struggled to break in recent weeks.
The sluggish price action comes despite Bitcoin still being 13.4% above its monthly low, suggesting that while the longer-term trend remains intact, momentum is weakening.
ETF Outflows Reflect Investor Hesitation
Adding to the bearish pressure, spot Bitcoin ETFs recorded $713 million in outflows last week, a sharp increase from the $172 million the week before. These outflows suggest that institutional confidence in the short-term outlook may be eroding, particularly amid macroeconomic uncertainties and lingering regulatory concerns.
Fear Indexes Drop Further
The Crypto Fear and Greed Index, tracked by CoinMarketCap, currently sits at 27, firmly in the “fear” zone. Meanwhile, CNN Money’s index is in the “extreme fear” range at 21. Historically, such levels often coincide with risk-off behavior, with investors pulling back from volatile assets like crypto in favor of safer holdings.
Technical Setup: Death Cross on the Horizon
The potential death cross is particularly notable given its track record as a trend reversal signal. If confirmed, it could accelerate selling pressure and push Bitcoin toward lower support levels, despite the broader market’s relative resilience in 2025.
However, some analysts argue that fear-heavy conditions can sometimes precede strong rebounds, as contrarian investors look to capitalize on discounted entry points.
