Bitcoin (CRYPTO: BTC) is holding near $90,000 as sentiment indicators flash a potentially bullish signal, even while analysts remain cautious following a sharp rejection from higher levels.
Sentiment Index Flashes A Bullish Signal
Bitcoin’s Fear & Greed Index has printed a technical crossover, with the 30-day moving average moving above the 90-day average for the first time since May 2025.
This “golden cross” suggests short-term sentiment is improving relative to the broader trend, CryptoQuant data shows.
Historically, this signal tends to appear after prolonged fear phases, when skepticism remains elevated and price is consolidating rather than topping.
In prior cycles, Bitcoin has often seen constructive price action in the weeks that followed, particularly when the signal coincided with higher lows and an absence of heavy distribution.
Is A Golden Cross A Reliable Indicator?
The crossover works best as confirmation, not a standalone buy signal.
Sustained separation between the two averages would support trend continuation, while a failed crossover would point to shallow optimism and raise the risk of renewed defensive selling.
Despite the improving sentiment signal, Bitcoin recently faced a sharp rejection near the top of its bear flag and inside the critical $95,700–$106,800 resistance zone.
The move highlights Bitcoin’s ongoing structural issue: persistently net-negative money flows.
The bounce from recent lows has lacked meaningful participation, a weakness clearly visible in capital flow data.
The $88,000–$91,000 region is now pivotal.
This area aligns with the top of a higher-timeframe golden pocket and must hold to preserve the short-term bullish structure.
A decisive break below it would increase the risk of the bear flag resolving to the downside, opening the door to much lower measured-move targets.
While 4-hour momentum indicators are attempting to turn higher, the absence of sustained inflows remains the core concern.
Until money flow turns decisively positive, Bitcoin may struggle to defend current levels and avoid a deeper corrective move.
Image: Shutterstock
Recent Comments