Bitcoin (BTC) Has Taken a Severe Hit, Dropping to a Recent Low of $78,000 Amidst Intense Selling Pressure

Bitcoin (BTC) has taken a severe hit, dropping to a recent low of $78,000 amid intense selling pressure. Over the past week, BTC has lost nearly 19%, reinforcing a strong bearish trajectory.

Bitcoin (BTC) price has taken a significant hit, dropping to a recent low of $78,000 amid strong selling pressure. Over the past week alone, BTC has shed nearly 19%, highlighting a prevalent bearish trend.

As uncertainty looms over the crypto sphere, traders are vigilant in monitoring key support levels for signs of a potential bottom in sight.

At the time of writing, Bitcoin is showing signs of minor stabilization, trading at $79,820, reflecting a 7.68% decrease over the past 24 hours. BTC’s 24-hour trading volume stands at $101.55 billion, while its market capitalization has fallen to $1.58 trillion.

Despite this slight respite, the leading cryptocurrency remains in bearish territory, which could escalate the risk of further price declines.

Crypto Fear & Greed Index Hits 10: Extreme Fear Plagues Investors

The Crypto Fear & Greed Index has plummeted to 10, signaling extreme fear among investors. The last time this level was encountered was during the LUNA collapse, an event that triggered widespread panic selling within the crypto market.

However, following this LUNA meltdown, a surprising 500% rally unfolded, showcasing that extreme fear can often precede strong price surges.

Historically, such deep negative sentiment has presented major opportunities for accumulating cryptocurrencies. As the saying goes, ‘be greedy when others are fearful, and fearful when others are greedy.’

Usually, when fear reaches its peak, it signals that the market is about to reverse. With BTC now approaching a key support zone and the Fear & Greed Index at its lowest point, some traders speculate that this could be an optimal accumulation zone for long-term investors.

Crucial Support Level for Bitcoin Ahead of Potential Rebound

According to renowned crypto analyst Captain Faibik, Bitcoin’s Weekly MA50 at $74,800 is a crucial level to watch out for. BTC previously tested this level in September 2024, bouncing back to fuel a significant uptrend.

If Bitcoin manages to hold above $74,800, history suggests a potential rebound that could propel BTC towards a new all-time high.

However, a break below this level could exacerbate the downtrend, pushing prices lower in the short term.

As Bitcoin hovers near critical support and market sentiment reaches extreme levels of fear, the coming days will be crucial in determining the next major move.

Will BTC stage a recovery and reclaim bullish momentum, or will bearish pressure prevail, leading to further price drops? The next chapter in Bitcoin’s price action is eagerly anticipated by those navigating the crypto market.