Bitcoin Reclaims $89,000 Amidst ‘Extreme Fear’ as Strategy CEO Declares Fundamentals ‘Couldn’t Be Better’
Bitcoin (BTC) has been recovering over the holiday week, rising 1.5% in the last 24 hours to stay above $89,000. This small price rise gives
Quick overview
- Bitcoin has risen 1.5% over the holiday week, currently trading above $89,000, despite being 29% off its all-time high.
- The Bitcoin Fear & Greed Index remains at 23, indicating a prolonged period of 'Extreme Fear' among retail investors.
- CEO Phong Le emphasizes the strong fundamentals for Bitcoin, citing significant institutional interest and government backing.
- Technical indicators suggest caution, with the Bitcoin Combined Market Index dropping below 0.4, signaling potential bearish trends.
Bitcoin BTC/USD has been recovering over the holiday week, rising 1.5% in the last 24 hours to stay above $89,000. This small price rise gives bulls a little bit of hope after spending the last two weeks dealing with “Extreme Fear” and bearish on-chain indications. Even while the asset is still about 29% off its all-time high of $125,100 in October, leaders in the institutional sector say that the market’s structural underpinning has never been stronger.
The Sentiment Paradox: Bitcoin’s 13 Days of ‘Extreme Fear’
Even though prices have been stable lately, retail mood is still very low. The Bitcoin Fear & Greed Index is at 23 right now, which means it’s been in the “Extreme Fear” zone for the 13th day in a row. In the past, long periods of FUD (Fear, Uncertainty, and Doubt) have been signs that the market was going against the trend.
Market watchers have said that major cycle bottoms generally happen when people are at their most negative. Even while the present wave of intense dread hasn’t led to a long-term rise toward six figures yet, contrarian traders are keeping a careful eye on whether this “sentimental exhaustion” will create the support needed for a breakout in Q1 2026.
Strategy CEO: Looking Past the Short-Term Noise
Phong Le, the CEO of Strategy (MSTR), is still quite optimistic about the asset’s long-term future, even though the price has dropped recently. Le said in a recent podcast that the fundamentals for Bitcoin “couldn’t be better,” citing the unprecedented backing from the U.S. government as an example. After the presidential order in March that set up the Strategic Bitcoin Reserve, traditional banks in the U.S. and UAE are said to be racing to catch up with the digital asset market.
Le told investors to stay “methodical and mathematical” about short-term price swings. Notably, Strategy’s mNAV (market valuation relative to Bitcoin holdings) just fell to 0.93, which means that the market is currently valuing the firm less than its 671,268 BTC treasury. This could be a sign that institutional “smart money” sees this as a good time to invest.
BTC/USD Technical Analysis: The BCMI Bearish Transition
Even while the fundamentals are good, the on-chain technicals say to be careful. The Bitcoin Combined Market Index (BCMI), which combines price activity with on-chain momentum, has dropped below its 0.5 equilibrium zone.
Bearish Signal: Woo Minkyu, an analyst, says that the BCMI is now below 0.4. In previous cycles (2019 and 2023), durable bottoms only formed when the BCMI dropped to between 0.25 and 0.35.
Support and resistance: Right now, Bitcoin is trading in a range between $87,700 and $94,000. To prove that the bear market theory is wrong, the daily close must be above $94,000.
Bitcoin Price Prediction 2026: Stability Before the Surge?
In the medium run, Bitcoin will likely stay in a sideways pattern as it tries to get rid of positions that are too leveraged.
Bearish Case: If the BCMI keeps going down around 0.30, Bitcoin could experience one last “capitulation wick” toward the $75,000–$80,000 support cluster before the end of Q1 2026.
Bullish Case: If the next administration makes the Strategic Bitcoin Reserve plans official sooner than projected, the accompanying supply shock might push BTC back up to its all-time high of $125,100 by mid-2026.
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