Bitcoin’s price stabilized on November 18 as investors cautiously bought the dip while awaiting two major catalysts: the release of the Federal Reserve’s FOMC minutes and Nvidia’s earnings report. After sliding to its lowest level since April, the market is showing signs that BTC may be close to bottoming out.
Earlier in the week, Bitcoin touched a low of $88,790 before recovering to around $93,700. Even with the bounce, BTC remains deep in a corrective phase down roughly 26% from its yearly high.
Extreme Fear Takes Over
One of the biggest market drivers now is fear. The Crypto Fear and Greed Index, compiled by CoinMarketCap, has plunged to 15 an extreme fear level not seen since April. This metric aggregates multiple factors such as Bitcoin’s price momentum, overall market volatility, derivatives activity, and how BTC is performing relative to the broader crypto market.
It’s not just crypto sentiment showing distress. The CNN Money Fear and Greed Index has also dropped to 12, with all sub-indices including market volatility, safe-haven demand, and junk-bond appetite sitting firmly in the extreme fear zone.
Historically, Bitcoin tends to begin major rallies when fear is at its peak. Last year, when market sentiment fell to 26, BTC rallied from $54,000 to a new all-time high. More recently, when the crypto index dipped to 19, Bitcoin climbed to $79,000 before surging to nearly $109,000. Conversely, many bear markets begin when greed is at its highest.
Is Bitcoin Close to a Bottom?
Technical indicators suggest that a rebound may be near. Bitcoin’s Relative Strength Index (RSI) has dropped into oversold territory around 30, while the Percentage Price Oscillator (PPO) has hit its lowest point of the year.
BTC has also touched the double-bottom target of $92,000 and is currently forming a hammer candlestick a pattern that often signals a bullish reversal.
If momentum shifts, analysts believe Bitcoin could reclaim the psychological $100,000 level in the short term. However, if BTC falls below this week’s low of $88,790, the bullish scenario would be invalidated and further downside could follow.
With fear dominating sentiment and technical indicators flashing potential reversal signals, traders are now watching closely to see whether Bitcoin is gearing up for its next rebound.
