Bitcoin in a Period of Stagnation: A Search for a New Bottom Has Begun

The price of Bitcoin is testing its lowest level since May, while extreme fear has begun to dominate the market once again. Bitcoin (BTC) dropped below 94 thousand dollars over the weekend, revealing the weak risk appetite in the market once more. The Crypto Fear & Greed Index remaining at 10 indicates that investors are monitoring the current decline in search of a potential bottom.

Trading around 95 thousand 087 dollars on Sunday evening, Bitcoin lost 1 percent in the last 24 hours and tested its lowest level since May 6. This weakness was not limited to Bitcoin; Ethereum (ETH) fell 3 percent to 3 thousand 113 dollars, XRP declined 2.1 percent to 2 dollars 21 cents, BNB dropped 1.6 percent to 926 dollars, and Solana (SOL) decreased by 3.6 percent to 137 dollars.

Senior crypto analyst Ali Martinez stated that Bitcoin has broken down from its current price channel, increasing the likelihood of a pullback towards 83 thousand 500 dollars. On the other hand, analyst Benjamin Cowen pointed out that the death cross signal observed in Bitcoin has historically often indicated local bottoms. Cowen emphasized that Bitcoin needs to react within the next week to prevent the cycle from breaking down.

Market strategist Charlie Bilello made an interesting comparison, noting that gold has risen 55 percent this year, becoming the best-performing asset of 2025, while Bitcoin has only managed to stay about 1 percent higher, making it the year's weakest major asset. This situation is a stark contrast to 2013.

Meanwhile, uncertainty continues in the U.S. U.S. Treasury Secretary Scott Bessent announced that the "dividend payments" financed by the 2 thousand dollar tariffs unveiled by President Donald Trump require Congressional approval. The optimism previously generated by this plan led investors to expect increased spending and inflows into crypto.

Though it might be early to say the market is completely darkened, according to Santiment data, Bitcoin discussion rates reached a four-month high on the day BTC fell below 95 thousand dollars. They highlighted that an increase in social dominance during such periods could raise the possibility of a turnaround. However, they also noted that this is not guaranteed. In this environment, while investors are discussing the possibility of a deeper decline, they believe the extreme fear could strengthen the search for a bottom.