Bitcoin currently: sharp fall and extreme fear in the market

Bitcoin is going through turbulent times. After reaching historic highs of $126,080 in early October, the cryptocurrency has suffered a significant drop, currently trading around $108,095, which represents a fall of 2.01% in the last 24 hours.

Market data reveals a concerning outlook. The fear and greed index stands at 25 points, placing us in “extreme fear”. This situation has intensified following the fall on October 10, when the price plummeted from $121,650 to $112,759 in a single session.

What is really happening? As an investor who has lived through several cycles, I can say that we are facing an inevitable technical correction after the euphoria that brought BTC to all-time highs. The charts clearly show a bearish trend since mid-October, with red candles dominating the landscape.

Personally, I am concerned about the extreme volatility we have seen. On October 10, the price fell to $102,156 before partially recovering. These sharp movements are devastating for those who use excessive leverage.

Technical analysts point out important resistances at $114,000 and $117,000, levels that now act as difficult psychological barriers to overcome. The key support is at $106,000, which was already tested on October 17.

Despite the gloomy short-term outlook, the fundamentals of Bitcoin remain strong. The market capitalization is above $2.15 trillion and the dominance in the crypto market is 55.84%. Furthermore, the programmed scarcity continues, with only 19.93 million BTC in circulation out of a maximum of 21 million.

The most frustrating thing is to see how many retail investors panic and sell at lows, while the whales accumulate. The on-chain data shows a decrease in exchange reserves, suggesting long-term accumulation.

Buy now or wait? The answer depends on your time horizon. If you are looking for quick profits, this may not be the moment. If you believe in the fundamentals and think long-term, these corrections have always been historical opportunities.

The market is scared, but blockchain technology and Bitcoin as a digital store of value continue to advance inexorably. Institutional adoption continues and market cycles have repeatedly shown that after each major fall comes a recovery.