Crypto Markets Today: Fear Grips Market as BTC Price Tests Support, Altcoins Weaken

The crypto market experienced significant anxiety as Bitcoin traded close to $91,000, amid an extreme fear sentiment. The Fear & Greed Index plummeted to 15/100, indicating severe bearishness reminiscent of earlier market downturns. Despite a potential relief bounce, analysts suggest Bitcoin might retest $87,500 support before recovering. Over $1 billion in leveraged futures positions were liquidated within 24 hours, predominantly affecting long positions. The implied volatility for Bitcoin peaked at its highest in six weeks, showing increased market unrest. Privacy tokens like Zcash and Dash faced sharp declines, while certain derivatives-exchange tokens offered glimmers of resilience. Overall, altcoins fell by 3.8%, exacerbating their monthly loss of nearly 20%. The recurring pattern of lower highs and lows hints at ongoing downtrends but suggests the market is not yet in crypto winter territory, as historical data indicates potential for recovery following significant corrections.

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