How low will the Crypto Fear & Greed Index go before Bitcoin recovers?
- Regardless of the correction to $100k, sentiment was not overly fearful
- Evaluation revealed {that a} dip to $92.5k is feasible if the truthful worth hole fails as a requirement zone
Bitcoin’s [BTC] worth drop from almost $112k to $101.3k, on the time of writing, noticed the market sentiment flip in direction of worry.
The truth is, whereas on-chain metrics mirrored cautious optimism, Bitcoin and the broader crypto market lacked momentum.
The aforementioned readings underlined greed final month, however they’ve turned impartial and fearful lately.
Now, whereas it’s regarding, the sentiment shouldn’t be as dangerous as what was seen in April. At press time, the worry and greed index confirmed that contributors didn’t anticipate deeper corrections. May that be the explanation why we are going to witness a drop to $92k subsequent?
Are the worry and greed index traits warning traders?
The bullish sentiment continued for almost two months. Nonetheless, it has sunk in direction of impartial ranges currently.
It could be starting to resemble March too. A sustained drop beneath the $98k-$100k vary might shift sentiment much more bearishly.
Supply: BTC/USDT on TradingView
A technical evaluation of the weekly chart revealed that the $97.9k-$100.7k (white field) vary is a good worth hole. It’s anticipated to function help within the coming days. It has already been defended in the course of the weekend’s worth drop.
Additional FUD within the conventional markets might pave the way in which for a Bitcoin fall beneath $98k. Nonetheless, as issues stand, the bias stays bullish after the market construction break in Might.
The Fibonacci retracement ranges highlighted $93.2k, $88.8k, and $82.5k because the help ranges in case $98k is ceded to the bears. Moreover, the OBV didn’t spotlight overwhelming promoting strain on the weekly chart.
The 6-month liquidation heatmap confirmed that $92.6k could be a sexy worth goal. In gentle of the unsure macroeconomic state of affairs, a correction to $94k is perhaps doable. The liquidity cluster might pull the value decrease too.
Buyers and merchants must be cautious. With out important demand, a bullish reversal from $100k could possibly be tough. The market construction on the 1-day chart has flipped bearishly already. As soon as sentiment is sufficiently fearful, Bitcoin may start to get better.
Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion
