A strong spike in the price of oil is causing concerns that inflation could get out of hand in the United States, which would prompt the Federal Reserve to take a more hawkish stance on interest rates in 2026.
In addition, the Fear and Greed Index dropped to 22 today, meaning that we are nearing “Extreme Fear” territory once again as the market continues to struggle. This marks a significant shift form the latest 46 (Neutral) reading we got a few weeks ago.
With zero bullish narratives to push cryptos higher, the odds favor the continuation of the downtrend that started in October 2025. Right now, we are looking at a 9% downside risk ahead if BTC drops to $60,000.
We got two consecutive sell signals in this lower time frame that confirm a bearish outlook. These are decisional candles that feature a specific candle pattern and above-average volumes. Also, the Relative Strength Index (RSI) just dipped to “oversold” territory, meaning that negative momentum has accelerated.
Although that raises the odds of a “dead cat” bounce, at this point, that would provide an attractive opportunity for a late entry.
Sell Signal at $68,000 Identifies Ideal Level for a Late Entry
As we highlighted recently, there were four previous sell signals in the hourly chart that identified a strong sell wall at this level. Now, we have another one at around $68,000, which makes that level our ideal entry for a late short.