Why Bitcoin Price Is Going Down: ETF Outflows, Market Fear & Fading Momentum Spark Sell-Off Panic

Traders got a momentary morale lift from Bitcoin’s bounce over $84,000, which changed the Crypto Fear and Greed Index from “Extreme Fear” to “Fear.” Though it is a modest advance, deep feeling is still unsteady. Bitcoin ETFs, more general market selloffs, and macroeconomic worries are still causing investors to withdraw funds. Though it might have levelled short term, the Bitcoin price is still far below its peaks. The question now is whether this slight recovery in sentiment can hold or if more downside pressure is coming.

Bitcoin Sentiment in a Volatile Market

The recent price movement of Bitcoin sentiment reveals how delicate the present market sentiment truly is. The cryptocurrency is having difficulty recovering ground after falling from its all-time peaks in late 2024. The quick movement above $84,000 caused a temporary change in attitude, but not a lot else. Trading is still nerve-racking. Still reflecting institutional investors’ reluctance are Bitcoin ETF outflows. Meanwhile, experts contend that Bitcoin’s conduct is straying from its former narrative of “digital gold. 

It’s now moving more like a tech stock—caught in the same macro crosswinds of policy shifts, trade wars, and shifting investor risk appetite—and not rising with conventional safe-haven assets. Although some people still see long-term possibilities, fear, not belief, is causing the short-term attitude. Although the Crypto Fear and Greed Index can rise, feelings can change rapidly given central bank actions and political instability pending. Less on charts, Bitcoin’s future course relies more on how financial markets are viewed by investors.

Bitcoin Price Prediction

Bitcoin price (BTC/USDT) is trading at $83,550 as of April 5, 2025; this is combined under a crucial resistance level of about $84,000. Though the price lately tried to rise above this point, it found consistent rejection, indicating heavy selling pressure at the top. One major support area still remains the $81,500 area, which had triggered a significant bounce before. With a 41.40 RSI, the momentum is somewhat bearish but not in the oversold range. Earlier, the RSI indicated many overbought and oversold levels, henceforth strong volatility over the most recent few sessions.

Chart 1: Analysed by vallijat007, published on TradingView, April 5, 2025

Flattening following a recent bearish crossover, the MACD at present indicates waning momentum. Fading momentum indicates that traders are biding their time for a breakout to determine the next directional movement. $88,000 could possibly be the upper resistance level should BTC surpass $84,500. A fall under support below $81,500, though, might cause a retest of lower levels. Bitcoin price seems range-bound until a definite breakout, with volume validation watched by traders.

Summary and shorter-term perspective

The Bitcoin price is range-bound as it floats below resistance and above an important support area. Momentum is subdued, and traders are waiting for a clearly defined breakout before jumping into fresh positions. Though the change in attitude from extreme panic to dread is promising, it is still too early to certify a turnaround. Bitcoin’s short-term trajectory depends on whether sellers will take control and drive it down again or if it can break through resistance, given the big risks still hanging.