- The Crypto Fear & Greed Index has hit the ‘extreme fear’ category, its lowest level since December 2022, as Bitcoin’s price struggles to stay above $57,000.
- Despite Trump’s appearance at the Bitcoin 2024 Conference pushing the top crypto yesterday, it was rejected by the $60,000 level, and analysts warn that further downsides are looming.
Bitcoin continues to struggle on the price charts, and despite a slight rally in the past four hours, the top crypto is down over 2% in the past day. With analysts warning that BTC could dip further, the Crypto Fear & Greed Index has hit an 18-month low as extreme fear takes over.
Bitcoin trades at $57,380, losing 2.35% in the past day for a $1.13 trillion market cap.
As we reported yesterday, Bitcoin 2024 organizers announced that Donald Trump would headline the event later this month in Texas. This gave BTC a big boost as it surged 3.5% to hit a high of $59,253. However, the boost was shortlived and BTC has been on a downtrend since.
It’s not just Bitcoin that’s shedding value: Ethereum lost 3.61% in the past day and is now struggling to stay above $3,000. Solana, Chainlink, Polkadot, and Dogecoin are down by over 4.5%, with Pepe shedding 12% overnight. While some like XRP defied the market trend and gained over 4%, it still wasn’t enough to offset the losses, with the total market cap now down 1.99% in the past day.
This week’s losses have led to panics in the industry. The Crypto Fear & Greed Index is now at 25, which signifies ‘extreme fear’; this is the lowest score since December 2022. Back then, Bitcoin had just hit a then-high above $60,000, but traders panicked and it led to a massive dip. Six months later, BTC had lost two-thirds of its value and was trading at $20,000.
The index, according to Alternative.me, is derived from a list of factors—volatility and market momentum/volume each account for 25%, while social media gets a 15% consideration. Dominance and Google trends account for 10% each. The platform used to conduct trader surveys, which would account for 15%, but it has since hit pause.
What’s Next for Bitcoin?
According to some analysts, Bitcoin’s downtrend might not be over yet. Justin Bennett noted on X that after it was rejected at $60,000, BTC is now caught up in a bearish wedge that signals further dips.
$BTC rejected from $60k yet again.
And now we have a potential rising wedge forming, which could point to further downside.
We’ll see if we get a full retest of channel resistance, but this 4h pattern is one to watch.#Bitcoin pic.twitter.com/hyjOW2t7UP
— Justin Bennett (@JustinBennettFX) July 11, 2024
Still, some headwinds remain. Key among them is the selloff from the German government—as we reported, the country has been dumping BTC en masse. Today, it transferred over 2,000 BTC to exchanges, further reducing its BTC stash.
While the selloff worries investors, analysts have noted that the pressure will be temporary. Soon, the amount of BTC Germany will still hold will no longer cause any strain on the market.
Some analysts are also bullish on BTC. In a note to investors today, crypto broker FalconX stated:
The prospect of some of the $16.3 billion FTX repayment over the next months translating into buying pressure, the increasingly positive stance toward crypto on both sides of the aisle, and the potential of an interest rate cut in September benefiting risk assets more generally should embolden medium- and long-term bulls.
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