Bitcoin's recent performance has been quite volatile. Last night, the price surged to $88,400 but then quickly retreated, with a low of $86,542 at one point. Many people are starting to feel anxious.

From a technical perspective, the situation is indeed a bit complicated. On the 4-hour chart, the MACD's DIF line has crossed below the DEA line, and both are in the negative zone, which is generally considered a bearish signal. The price previously attempted to reach $94,600 but then fell by about 7%. The short-term moving averages are already aligned in a bearish formation, with the 4-hour candlesticks consecutively closing lower, breaking below the EMA7 and EMA30. On the daily chart, a typical bearish pattern has even appeared.

From a capital flow perspective, the pressure is also significant. ETF outflows have continued recently, and funds flowing out of the precious metals market have not entered the crypto market as expected. The Fear and Greed Index has dropped into the extreme fear zone, the lowest market sentiment this year.

Currently, Bitcoin is hovering around $87,936, with the $87,200 level appearing particularly critical. This is like the last line of defense for the bulls; if it cannot hold, the price may continue to decline.

The market is oscillating between bulls and bears, and no one can say for sure who will come out on top in the end. However, closely monitoring these technical and capital flow signals is very helpful in judging the subsequent trend.