Bitcoin’s Weekend Dip to $93K Sparks Volatility, ‘Extreme Fear’: What’s Next?

Core Insights - The broader crypto market experienced a downturn, with Bitcoin dropping to a low of $93,029, leading to liquidations of nearly $579 million on Sunday. As of Monday morning, Bitcoin was trading at $95,453, down 0.1% on the day [1]. Market Sentiment - The recent market activity has created a bearish sell signal known as 'Death Cross,' indicating a potential shift from a bull to a bear market as the 50-day moving average crossed below the 200-day moving average [2]. - The Crypto Fear & Greed Index has indicated 'Extreme Fear,' reflecting investor panic as Bitcoin has fallen 10% from its intra-week high of $106,562. The Fear & Greed perpetual sentiment market shows a slight bearish skew with a 51/49 split towards Fear [4]. Economic Factors - Market uncertainty is attributed to the lack of key economic reports, leading to a diminished clarity regarding the Federal Reserve's potential actions in December. Expectations for a rate cut have significantly decreased [3]. - The end of the government shutdown is expected to alleviate some liquidity pressure, which may support the markets, although it is not seen as a transformative factor [5]. Future Outlook - Experts predict a period of heightened volatility and consolidation for Bitcoin, with its near-term trajectory heavily influenced by macroeconomic data and institutional flows. While aggressive selling may be slowing, a trend change may take time to materialize [5].