Bitcoin Under Pressure as Macro Defensiveness Persists

CNN Fear & Greed Index

Source: CNN

While risk-on sentiment rises ahead of the FOMC meeting and mega-cap earnings, macro defensiveness can still be seen, with precious metals holding at steep levels and Bitcoin remaining pressured below the 87,000 mark.

The CNN Fear & Greed Index is leaning toward the greed side, as geopolitical headlines get priced into markets and gold and silver slow near potential tops. Trump’s Davos speech remains a valid bullish factor across U.S. indices and broader sentiment, given the positive economic narrative between steady growth and easing inflation pressures. However, the weakness of the U.S. dollar, sitting on what appears to be a knife’s edge along its 17-year trendline support, alongside persistent geopolitical risks, continues to keep macro defensiveness alive.

The Fed is expected to hold rates in line with improving economic metrics, a bullish factor supporting U.S. indices toward the upside. Volatility risks remain elevated in both directions following earnings from Tesla, Microsoft, and Meta on Wednesday after the U.S. close, with potential ripple effects into Thursday’s session open, followed by Apple and Amazon reporting after Thursday’s U.S. close.

From a crypto perspective, Bitcoin price action remains pressured below the 90,000 mark, in line with Ethereum’s consolidation below the 3,000 level, despite increasing global regulation and broader crypto integration. Key technical levels remain critical in defining the sustainability of current trends amid shifting headlines.

Bitcoin Outlook: 3-Day Time Frame – Log Scale

Source: Tradingview

The key pattern on the Bitcoin chart, clearly visible on the 3-day timeframe, is the contracting wedge that developed between November and January. A bearish breakout from this structure is holding near the 87,000 mark. This pattern aligns with a bearish continuation setup, supported by RSI holding below the 50 threshold and below its moving average, keeping sentiment under pressure.

Should price reclaim the 90,000 and 95,000 levels, bullish bias may begin to realign on the chart. From the current price structure, a close below the 84,000 mark is expected to extend losses toward the 80,000, 75,000, and 70,000 zones, offering potential dip-buying opportunities.

Written by Razan Hilal, CMT

Follow on X: @Rh_waves