Bitcoin’s 10% Crash to $86K Signals More Downside Ahead

• Bitcoin price fell 10% to $86K as the fear index dropped to 10 showing deep market worry.  
• The price broke key support at $94K and now struggles to stay above the $88K mark.  
• Market indicators show strong selling and a possible drop to $79K before any rebound.

Bitcoin’s recent price action has taken a sharp downturn, with the token dropping 10.61% to $86,050, signaling an abrupt end to its consolidation phase. The breakdown from a symmetrical triangle formation suggests further downside risk, while the Fear Greed Index plunged to 10 (Extreme Fear) reflecting market-wide panic. Historically, extreme fear often precedes strong reversals, yet technical indicators paint a bearish outlook. The next key support levels sit near $79,000, with a potential pullback toward $89,000 before further decline.

Bitcoin Faces Critical Support Amid Breakdown

The 7-day chart shows a breakdown from the triangle pattern, which confirms a downtrend continuation after many unsuccessful attempts to reclaim higher resistance levels. According to a Fibonacci analysis, the coin is currently testing the 61.8% retracement at $88,022 and is breaking through the 50% area ($94,578). A close below this point could push BTC toward the 78.6% level at $78,688, aligning with the next support zone.  

Source: TradingView

The sell-off follows a failed attempt to hold the 38.2% retracement level ($101,134) and shows a shift from bullish consolidation to a potential reversal in its trend. Volume indicators suggest selling pressure is increasing, reinforcing the downward trajectory.

Market Sentiment Deteriorates as Fear Index Crashes

It is evident that the attitude of investors has particularly been negative, with the Fear Greed dropping to 10, a decline from last month’s 72 (Greed) and last week’s 49 (Neutral). This decline indicates uncertainty, potentially reducing liquidity and lowering trading volumes. Such extreme fear often precedes strong rebounds, yet current market conditions suggest caution, as selling pressure remains dominant.  

Source: Bitget

A breakdown in sentiment is evident from the past day’s shift from Extreme Fear (21) to today’s Extreme Fear (10), marking a clear acceleration in bearish sentiment. Historically, similar fear levels have preceded major bottoms, but technical indicators suggest BTC may still have room to fall before a recovery takes shape. The MACD indicator further confirms the bearish outlook, with the MACD line at -1,691, significantly below the signal line at 6,799. This suggests negative momentum, with the histogram expanding further into red territory, indicating increasing selling dominance.

Related: Fear and Greed Falls to Extreme with Massive Liquidation

Price Outlook: A Test of $79K or a Rebound to $89K?

Bitcoin’s next price movement hinges on whether it holds the 61.8% retracement level at $88,022. If BTC finds support here, a short-term rebound toward $89,000 is possible before sellers regain control. However, a breakdown below this level could send BTC to $79,000, aligning with the 78.6% retracement level ($78,688).

Despite widespread fear, the market often moves opposite to expectations. If extreme fear persists, a contrarian bounce could materialize. However, with downward pressure increasing, Bitcoin’s short-term trend remains bearish unless a decisive reversal occurs.

The post Bitcoin’s 10% Crash to $86K Signals More Downside Ahead appeared first on Cryptotale.