Bitcoin price drops 5% to six-week low as sentiment turns to extreme fear
Trump’s tariffs add pressure to Bitcoin’s decline
Bitcoin price has fallen sharply, breaking below crucial technical levels as market sentiment takes a hit. The alpha cryptocurrency started the week on the back foot, sliding over 5% to a six-week low of $91,000.
The price drop pushed BTC below the 100-day EMA at $94,000, reinforcing the broader downtrend that has persisted since last month’s all-time high of $109,400. From that peak, Bitcoin has now shed 16.8%, with technical indicators suggesting further downside remains a possibility.
The Relative Strength Index (RSI) on the daily chart has yet to reach oversold territory, indicating that bearish pressure may not have fully played out. BTC briefly recovered 1.5% in the Asian session on Tuesday, climbing to $91,900 during European trading hours. However, any sustained recovery faces immediate resistance at $93,400 last week’s support level that has now turned into a near-term barrier.
Bitcoin price dynamics (Jan 2025 - Feb 2025). Source: TradingView.
Adding to market sentiment, the Crypto Fear & Greed Index, which measures market sentiment on a scale of 100, plummeted to 25, marking a shift into “Extreme Fear.” This represents a steep decline from the previous day’s reading of 49, when sentiment remained “Neutral.”
Trump’s tariff stance fuels risk-off sentiment, adding pressure on bitcoin
The broader market downturn coincides with comments from former U.S. President Donald Trump, who reiterated that his planned 25% tariffs on Canada and Mexico are moving forward. Trump’s remarks at a press conference with French President Emmanuel Macron on February 24 reignited concerns across financial markets. Historically, discussions around tariffs have had a negative effect on Bitcoin, likely due to their impact on broader risk sentiment.
Looking ahead, Bitcoin’s price trajectory remains vulnerable. A failure to reclaim $93,400 as support could leave BTC exposed to further declines, with the next key support level sitting at January’s low of $89,400. The combination of sustained selling pressure, weak sentiment, and macroeconomic uncertainty suggests that Bitcoin traders should be cautious of further downside risks in the near term.
Bitcoin reached $95,000 support after facing early selling pressure in the Asian session. Spot Bitcoin ETFs saw $39 billion inflows, but over half came from arbitrage trades rather than long-term buying.
