Bitcoin Fear and Greed Index fuels fears of BTC’s price drop

• Bitcoin grips average concern; if it persists, short-term holders might promote to interrupt even.
• Their exit may sign a value backside.

Bitcoin [BTC] bulls have prevailed after what appears to be the longest consolidation in historical past, pushing BTC above $60K. Nonetheless, the momentum was transient, with BTC retracing beneath assist and buying and selling at $59.8K at press time.

Consequently, the market sentiment has shifted again to concern, as bulls and bears battle for management of key assist ranges. 

Bitcoin Concern and Greed reveals excessive concern

Traditionally, an index beneath 20 signified excessive concern, typically aligning with value bottoms. Throughout these intervals, new buyers flood the market in search of low cost BTC, whereas short-term holders exit to interrupt even.

At the moment, the Bitcoin market is experiencing average concern, making buyers extra cautious. If this pattern holds, it may improve the chance of a value backside.

Supply: Bitcoin Journal Professional

Put merely, if concern persists, short-term holders may promote, pushing costs down. Solely as soon as a value backside is reached, a rebound may entice buyers to purchase the dip.

Due to this fact, monitoring STH exercise may present insights. If concern results in panic promoting, Bitcoin may head towards a value backside.

STH exit poses an actual risk

In line with AMBCrypto’s evaluation of the chart beneath, a spike within the adverse web place of STH typically indicators a market prime, adopted by a bearish pullback.

In brief, STH exits usually happen when BTC hits key resistance, with the following decline reflecting their technique to exit earlier than costs fall.

Supply : CryptoQuant

Opposite to widespread perception, if this pattern holds, the $60K — $61K vary may act as resistance slightly than assist.

Due to this fact, if bulls fail to take care of management, BTC may retrace to the $51K assist earlier than a possible correction.

To substantiate this pattern, AMBCrypto examined long-term holders. If $60K turns into the following backside, it may current a buy-the-dip alternative.

Giant cohorts maintain the important thing to the highest

Whereas short-term holders regulate their positions as BTC hits essential resistance, long-term holders have been actively divesting to take care of the $60K degree as the following assist zone.

The netflow ratio, now at 0.30%, has doubled from yesterday, indicating growing assist from massive hodlers, as evidenced by this post. 

Supply : IntoTheBlock

Learn Bitcoin’s [BTC] Price Prediction 2024-25

$60K represents a key battle zone, with short-term holders viewing it as a possible market backside, strengthened by rising concern.

The reversal of $60K into strong assist hinges on long-term holders, whose actions may problem the value backside thesis.