- The Bitcoin Rainbow Chart confirmed that buyers may scoop up extra BTC on a budget.
- A deeper take a look at the sentiment confirmed that buyers would possibly need to wait.
Bitcoin [BTC] has shed 6.5% for the reason that twenty eighth of March. Quick-term BTC holders had been promoting at a loss, and the annualized Sharpe ratio confirmed that BTC risk-adjusted returns had been reducing.
Mixed with the information of the U.S. tariffs beginning on the 2nd of April, sentiment throughout the crypto markets was muted.
Supply: Blockchain Heart
The Bitcoin Rainbow Chart chart confirmed BTC was “still cheap”. This, by itself, shouldn’t information long-term buyers’ plans, for the main crypto was nonetheless in a downtrend.
Maybe the second half of 2025 may be variety to the bulls. Information confirmed that the approaching weeks possible gained’t be.
BTC: Worry dominates the markets as soon as once more
Supply: Various.me
The Worry and Greed Index was in fearful territory from late February. It didn’t cross above the 50 mark in March however was making a sequence of upper lows.
Whereas technical evaluation on the worry index won’t be as illuminating as it could be on the value charts, the latest dive under the 30 degree instructed worrisome instances for buyers, because it marked a brand new low since mid-March.
The plunge in market sentiment got here as the broader inventory market additionally braced for a success. The fearful sentiment would possible spur higher promoting stress, driving costs decrease.
Supply: BTC/USDT on TradingView
The 1-day BTC chart signifies a strongly bearish outlook within the quick time period. The 20DMA and 50DMA affirm the continued downtrend, as Bitcoin has but to determine a brand new greater excessive above $90k, sustaining its bearish construction. Moreover, it has dropped under the $82.5k native assist zone.
Since February, the OBV has been trending downward. Though it stabilized within the latter half of March, reflecting a steadiness of energy between consumers and sellers, this solely provided a slim probability of bullish restoration.
Latest promoting stress has erased that hope, and the OBV is prone to hit a brand new low within the coming days. If this occurs, Bitcoin buyers ought to put together for a possible value drop under $78k.
Whereas the Rainbow Chart recommends shopping for, present market sentiment and value traits recommend persistence would possibly yield higher outcomes. The downtrend persists, and till it reverses, bullish buyers might have to attend for extra favorable situations.
Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion
