CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an account
✖

Bitcoin Analysis: Will Bears Break Through the 90k Barrier?

Article By: ,  Senior Market Analyst
Yesterday 11:07 PM
  • Bitcoin has recorded a decline of over 15% from its peak and is now near the critical 90k barrier.
  • The Fear and Greed Index for cryptocurrencies has shifted from highly positive values to a neutral zone, with the possibility of further decline. This change has increased selling pressure on Bitcoin.

 

The Role of the Fed

In December 2024, Federal Reserve Chairman Jerome Powell addressed the possibility of a favorable regulatory environment for Bitcoin following Trump’s arrival. During a press conference, Powell stated that the central bank's internal regulations prohibit holding Bitcoin and that any changes to this policy would require congressional approval. This directly impacts the feasibility of establishing a strategic cryptocurrency reserve.

Currently, the most concrete proposal for cryptocurrency regulation comes from Senator Cynthia Lummis, who introduced the Bitcoin Act of 2024. This legislation would allow the Treasury and the Fed to acquire 200,000 Bitcoin annually over five years, equivalent to 5% of Bitcoin's global supply. However, the proposal faces resistance in the Senate, and its approval remains uncertain.

Since Powell's statements, Bitcoin has continued its downward trend, falling from its peak of $108,000 to its current support level at $90,000, primarily due to reduced confidence in a stable regulatory plan in the U.S.

 

Market Confidence

 

The Fear and Greed Index for cryptocurrencies currently stands at 47, indicating a neutral zone. This reflects weakened short-term confidence, as bullish positions have lost strength in the market. The lack of consistent buyers has given way to a dominance of selling positions.

 

Table of CMC Crypto Fear and Greed Index Performance

Source: Coinmarketcap

 

In the chart, the index dropped from extreme greed values (88 in November) to neutral levels (below 60) between late December and early January. This decline aligns with a significant correction in Bitcoin's price. If the index continues to fall, market confidence is likely to erode further, maintaining selling pressure in the short term.

 

Chart of CMC Crypto Fear and Greed Index Trend

Source: Coinmarketcap

 

Bitcoin Technical Outlook

From its all-time high of $108,000, Bitcoin has experienced one of the largest bearish corrections in the past three months. It has now fallen over 15% since mid-December and is facing a critical barrier at the $90,000 level.

 

Source: StoneX, Tradingview

 

  • Lack of Clear Trend: The market is showing indecision, creating a short-term lateral range between the $106,000 ceiling and the $90,000 support.

 

  • 106k: This level represents the comfort zone for bullish movements over the past month and corresponds to the all-time high. Oscillations near or above this level could restore confidence and create new opportunities for an upward trend.

     

  • 90k: Currently acts as the key support level for bearish movements. This is the third time the price has tested this barrier. A sustained break could extend the bearish trend in the short term.

Below $90k lies the $87k level, marked by the 38.3% Fibonacci retracement and a key trendline, further reinforcing this price zone as a critical barrier. Breaks below $87k could accelerate selling pressure in the coming sessions.

 

  • MACD:
    • The signal line and the MACD line show a negative slope, approaching the neutral zone at 0.

    • The MACD histogram continues to oscillate below the 0 level, indicating that recent movements have been predominantly bearish.

The indicator reveals that most recent oscillations have remained in a bearish zone, highlighting the dominance of selling positions in the market. As the histogram moves further from the neutral line, bearish pressure is likely to intensify. At present, there are no extreme signals from the indicator suggesting a potential short-term bullish correction.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.

StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.

StoneX Europe Limited is registered with the German Federal Financial Supervisory Authority (BaFin). BaFin registration ID: 10160255

FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.

The statistical data and the awards received refer to the Global FOREX.com brand.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

Additionally, StoneX Europe Ltd is allowed to provide Investment and Ancillary Services to the following non-EU jurisdiction: Switzerland.

StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.

Tied Agent Information: KQ Markets Europe Ltd with Company No. HE427857.
Address: Athalassas 62, Mezzanine, Strovolos, Nicosia Cyprus.
Services Provided: Reception and Transmission of Orders.
Commencement Date: 06/12/2022
Website: KQ Markets - CFD Trading | KQ Markets

We may pay inducements, such as commissions or fees, to affiliates or third-party introducers for referring clients to us. This is in line with regulatory guidelines and fully disclosed where applicable.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

© FOREX.COM 2025