This BTC rebound has fizzled out again. After failing to break through $94,000, the price dropped straight back to $89,566, falling 2.58% in a single day. How bad is market sentiment right now? The Fear & Greed Index is stuck at 26—firmly in the fear zone.

Even more discouraging data: $492 million was liquidated across the network in 24 hours, with 82% of that being long positions. The total crypto market cap has shrunk to $3.02 trillion, while Bitcoin’s market dominance has actually risen to 58.9%. What does this mean? Funds are desperately fleeing to BTC, while the altcoin market is in utter despair.

But this isn’t just a simple technical correction this time. The most troubling part is that the market’s reaction to news has become completely unhinged—no one believes the good news, but any bad news causes a total collapse. Liquidity has dried up severely; the combined 10% depth of a leading exchange, a compliant platform, and a major mainstream trading platform adds up to just $405 million, down 70% from last November’s peak.

Now BTC is stuck firmly in the $87,000–$92,000 range. Every time it tries to break upward, there’s not enough buying support, and any selling pressure quickly breaks the momentum. The order book near key resistance levels is getting thinner, indicating that big players are reducing positions and sitting on the sidelines.

Technically, the $88,000 support level may not hold much longer, with the probability of a retest rising quickly. Buying interest continues to shrink, so we’re likely in for more choppy sideways action in the short term.