Bitcoin Investors Show Fear – Could A Price Bottom Be Imminent?
06 Ottobre 2024 - 4:00AM
NEWSBTC
In contrast to popular bullish sentiments, Bitcoin began October on
a bearish note, recording a price decline of over 7% in the first
three days of the month. However, while the BTC market experienced
an uptick on Friday as data from the US Labor Department indicated
incoming rate cuts, investors have generally retained a cautionary
approach. Related Reading: Analyst Says Bitcoin Crash Might Not Be
Over, Why $60,365 Is Important Bitcoin Fear And Greed Index Touches
37 As Investors Become Uncertain In a Quicktake post on
CryptoQuant, an analyst with username maartunn shared that the
Bitcoin Fear and Greed Index currently signals fear following the
asset’s recent price slump The Fear and Greed Index generally
measures the emotions, moods, and behaviors of the crypto market as
well as predicts potential trends based on investor sentiment. The
index operates on a 0-100 scale, where values above 50 indicate
greed, with anything over 74 representing extreme greed, while
values below 50 signal fear, and under 24, extreme fear. According
to maartunn, the Fear and Greed Index is presently at 37,
indicating that many investors are cautious about adding the
leading cryptocurrency to their portfolio. In particular, the
analyst notes that each time the Fear and Greed Index reached the
fear level since 2023, Bitcoin’s price has formed a bottom, i.e.
reached the lowest point during a price decline, and is set for
price reversal. Notably, Bitcoin already showed an upward
movement on Friday after starting October with a price decline.
However, it cannot be said that the price bottom has now occurred
as Bitcoin’s daily chart shows the asset is still far above its
next significant support level following months of consolidation
between $55,000 – 70,000. Although, if the premier cryptocurrency
has bottomed out, it could be heading for a price breakout in line
with popular expectations for a bullish “uptober”. For context,
October has proven to be the most frequent bullish month for
Bitcoin resulting in an average gain of 22.90% in the last 11
years. Related Reading: Bitcoin Price Dip Explained: Key
Causes And Where To Expect A Bounce Back To $70,000 Dominant
Activity Of Stablecoins Supports Fear And Uncertainty Among
Investors In addition to the Bitcoin Fear and Greed Index of 37,
the crypto market has also experienced an increase in market
activity of stablecoins namely the Tether USD (USDT) and USD Coin
(USDC). This development indicates that investors are opting
for less volatile assets than risky coins such as Bitcoin, which is
often due to uncertainty and fear of impending price crash.
CryptoQuant analyst BaroVirtual has attributed this fear to several
factors including weak retail market participation, rising
geopolitical tensions in the Middle East, as well as the SEC’s
hesitation to launch a Spot Ethereum ETF Options. At the time of
writing, Bitcoin continues to exchange hands at 62,071 following a
2.17% gain in the last day. Meanwhile, the token’s daily trading
volume is down 17.91% and valued at $29.71 billion. Featured image
from The Motley Fool, chart from Tradingview
Grafico Azioni Tether USD (COIN:USDTUSD)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Tether USD (COIN:USDTUSD)
Storico
Da Dic 2023 a Dic 2024