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

“bitcoin-usd/”>BITCOIN: The Party’s Over, Darling!”

• The Bitcoin Rainbow Chart showed that investors could scoop up more BTC on the cheap, but really, who doesn’t love a good bargain? 🤑
• A deeper look at the sentiment showed that investors might want to wait, because darling, patience is a virtue, especially when it comes to cryptocurrency. 😏

Bitcoin [BTC] has shed 6.5% since the 28th of March, and let’s be real, that’s a lot of coins to cry over. Short-term BTC holders were selling at a loss, and the annualized Sharpe ratio showed that BTC risk-adjusted returns were decreasing, which is just a fancy way of saying “oh dear, it’s not looking good.”

Combined with the news of the U.S. tariffs starting on the 2nd of April, sentiment across the crypto markets was as flat as a failed soufflé.

The Bitcoin Rainbow Chart, bless its heart, showed BTC was “still cheap”, which, while a lovely sentiment, shouldn’t guide long-term investors’ plans, for the leading crypto was still in a downtrend, darling. It’s like trying to find a bargain at a thrift store – it might look good, but it’s probably just a mess.

Perhaps the second half of 2025 might be kind to the bulls, but until then, let’s just say it’s a good thing I’m not invested in BTC, or I’d be crying in my champagne. 🥂 Data showed that the coming weeks likely won’t be, shall we say, “bullish”.

BTC: Fear dominates the markets once again, and honestly, who can blame them? 😱

The Fear and Greed Index was in fearful territory from late February, and really, who wouldn’t be? It did not cross above the 50 mark in March but was making a series of higher lows, which is just a nice way of saying “it’s still a mess”.

While technical analysis on the fear index might not be as illuminating as it would be on the price charts, the recent dive below the 30 level suggested worrisome times for investors, as it marked a new low since mid-March, and honestly, who wants to be worried? 😩

The plunge in market sentiment came as the wider stock market also braced for a hit, because when one market gets nervous, they all get nervous, darling. The fearful sentiment would likely spur greater selling pressure, driving prices lower, and really, who wants to be on the wrong side of that? 🤦‍♀️

The 1-day BTC chart indicates a strongly bearish outlook in the short term, and let’s be real, who wants to be bearish when it comes to their investments? The 20DMA and 50DMA confirm the ongoing downtrend, as Bitcoin has yet to establish a new higher high above $90k, maintaining its bearish structure, and really, that’s just a fancy way of saying “it’s still going down”. Additionally, it has dropped below the $82.5k local support zone, which is just a nice way of saying “oh dear, it’s getting ugly”.

Since February, the OBV has been trending downward, and really, who wants to trend downward when it comes to their investments? Although it stabilized in the latter half of March, reflecting a balance of power between buyers and sellers, this only offered a slim chance of bullish recovery, and honestly, who wants to be on the wrong side of that? 🤦‍♀️ Recent selling pressure has erased that hope, and the OBV is likely to hit a new low in the coming days, which is just a nice way of saying “it’s going to get worse before it gets better”. If this happens, Bitcoin investors should prepare for a potential price drop below $78k, and really, who wants to be prepared for that? 😩

While the Rainbow Chart recommends buying, current market sentiment and price trends suggest patience might yield better results, because darling, patience is a virtue, especially when it comes to cryptocurrency. The downtrend persists, and until it reverses, bullish investors may need to wait for more favorable conditions, and really, who wants to wait? 🤦‍♀️

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2025-04-01 00:11