Bitcoin Fear and Greed Index urges caution – What should investors do next?

• The Bitcoin Rainbow Chart confirmed that buyers may scoop up extra BTC on a budget.
• A deeper have a look at the sentiment confirmed that buyers would possibly wish to wait.

Bitcoin [BTC] has shed 6.5% because the twenty eighth of March. Brief-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 “nonetheless low-cost”. 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 is likely to be variety to the bulls. Knowledge confirmed that the approaching weeks seemingly 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 beneath the 30 degree recommended worrisome occasions 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 seemingly spur better promoting strain, 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 ascertain a brand new greater excessive above $90k, sustaining its bearish construction. Moreover, it has dropped beneath the $82.5k native help zone.

Since February, the OBV has been trending downward. Though it stabilized within the latter half of March, reflecting a stability of energy between consumers and sellers, this solely provided a slim likelihood of bullish restoration.

Latest promoting strain has erased that hope, and the OBV is more likely to hit a brand new low within the coming days. If this occurs, Bitcoin buyers ought to put together for a possible value drop beneath $78k.

Whereas the Rainbow Chart recommends shopping for, present market sentiment and value traits counsel endurance would possibly yield higher outcomes. The downtrend persists, and till it reverses, bullish buyers might have to attend for extra favorable circumstances.

Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion