Bitcoin appears to be caught in a repeated bear flag, while crypto sentiment has fallen back below 20. However, hopes for liquidity and Bitcoin’s strength during global shocks have kept bulls from giving up completely.
So, was this structure finally ready to break to the top, or was there another flush waiting underneath?
Bitcoin bear flag meets extreme fear
Bitcoin had once again formed the same classic bear flag. This structure started after the February 6 dip and repeated the same setup as in November 2025 before Bitcoin was dumped in late January 2026.
That was not an arbitrary shape. It was a warning.
Bitcoin continued to enter a bearish channel and failed to reverse the trend. A break above the top line and a strong hold would have quickly turned sentiment around.
What if that breakout failed?
Then the bottom line became the problem. Losing that support would have exposed Bitcoin to lower lows again. If that didn’t work, the bulls would have seen the same painful movie twice.
Meanwhile, sentiment remained ugly. The Fear & Greed Index was at 12, back in Extreme Fear.
Sometimes fear marked a reversal. Other times it turned out that the market was still too weak to fight back.
Fed liquidity adds fuel as Bitcoin shines through global shocks
On March 24, the Fed injected $8.071 billion through a planned short-term purchase of government bonds. However, crypto traders rarely ignore headlines about liquidity when they smell even a little fuel.
Did everyone think it was bullish? Not at all. Some expected a short-term rise for Bitcoin and altcoins. Others called the amount too small to matter. Therefore, the response remained divided and emotional.
Meanwhile, Bitcoin remained strong during major global shocks. It gained 20% during the 2020 Iran crisis, 21% during the COVID-19 crisis, 15% in Ukraine and 32% during the banking crisis.
Even during the last conflict in Iran, Bitcoin gained 12% while gold fell 16%.
Will BTC break above or fall?
If Bitcoin wanted to escape this trap, demand, institutional strength, and steady follow-through needed to emerge.
A break above the bear flag, followed by a rate cut, could have sent Bitcoin higher quickly. However, macroeconomic weakness was still looming downward. Failure to break cleanly probably meant another nasty fall.
Final summary
- Bitcoin repeated a dangerous pattern, and extreme fear showed that belief remained seriously damaged.
- The headlines about liquidity helped the story, but only real purchases could prevent another crisis.