As a researcher with experience in cryptocurrency markets, I’ve seen firsthand how unpredictable Bitcoin can be. After holding above $64,000 for some time, the recent drop below $63,000 is concerning, but not necessarily a cause for panic. The Fear and Greed Index swinging towards neutral from extreme greed indicates that fear is creeping in, which could be due to miners selling, long-term holders taking profits, and hedge funds employing carry trades.
As a crypto investor, I’ve been closely monitoring Bitcoin‘s price action after it failed to hold above the critical support level of $64,000. Now, the digital currency has plunged even below the next support at $63,000. The question is whether the 0.618 Fibonacci level, which lies around $59,200, will act as a cushion or if we should brace for further declines.
A big swing towards Fear
If the market hadn’t exhibited significant fear last week, the Fear and Greed Index is indicating a shift towards that sentiment currently. Previously, this gauge had been displaying an extreme greed score in the mid-70s for an extended period. However, it now shows a neutral reading of 51, representing a 20-point change from the previous week.
Serious concerns for price
As a researcher studying the Bitcoin market, I’ve observed that recent selling pressure from miners, profit-taking by long-term holders, and effective “carry trades” by hedge funds have collectively hindered the cryptocurrency’s ability to rise in value over the past few weeks.
From an analyst’s perspective, if the price were to dip below $60,000 and remain there for an extended period, it would raise significant concerns. While it’s possible that the price could still be within the bull market range around $48,000, such a prolonged decline would likely extend the overall bull market’s duration and potentially hinder the market top’s eventual height.
$BTC bullish wedge pattern
As a researcher studying the cryptocurrency market, I’ve noticed that the current short-term trend for Bitcoin ($BTC) is forming a downward sloping wedge on the 4-hourly chart. This pattern is typically considered bullish, as it suggests a potential breakout to the upside. However, it’s important to keep in mind that if this pattern breaks down instead, it would be a bearish sign. At present, there’s no cause for panic, but it’s crucial to stay informed and vigilant.
0.618 fibonacci is strong support
On a weekly basis, Bitcoin’s ($BTC) price has found a stable position above the 0.618 Fibonacci level. This occurs as the Stochastic RSI indicator reaches its lowest point on this timeframe, suggesting that a price rebound could follow. Should the price drop to hit the 0.786 Fibonacci level, the likelihood of a bounce increases due to its historical significance as strong support.
If in doubt, remind yourself that this is Bitcoin
As an analyst, I would remind myself that I’m dealing with Bitcoin during its bull market. Its appeal becomes even more attractive considering the uncertainties surrounding fiat currencies. Although there might be some volatility ahead, especially over the summer, the probability is that we’ll see further price increases leading us back to previous all-time highs.
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2024-06-24 13:01