Bitcoin: Why hasn’t BTC price dipped below $92K yet?

• Bitcoin’s greed index has peaked simply as soon as, preserving sentiment in limbo.
• Merchants are favoring fast flips over long-term conviction, dulling Bitcoin’s ‘high-risk, high-reward’ edge.

If historical past tells us something, consolidation is commonly the calm earlier than a breakout – massive cash fends off a pullback, whereas weak HODLing delays a provide shock.

Bitcoin [BTC] hit $100K over every week in the past, but it refuses to drop under $92K. Is that this the buildup to a breakout, or is one other pullback about to shake the market?

Decoding the present market temper

Because the New Yr, Bitcoin’s greed index has peaked simply as soon as, with sentiment principally impartial. Historical past exhibits sustained greed fuels rallies – identical to BTC’s run to $106K final December.

Supply: BGeometrics

Bitcoin’s ‘high-risk, high-reward’ edge is fading as merchants favor fast flips over long-term bets. The market hasn’t slipped into “excessive” worry, which regularly alerts a real market backside.

This holding sample might not final. Practically $500 million have flowed out of BTC ETFs in three days. Whales are cashing out, promoting strain is rising, and derivatives are flashing warning indicators.

If this development holds, a breakout could also be off the desk. As a substitute, worry may take over, dragging BTC all the way down to $88K earlier than its subsequent massive transfer.

Bitcoin at a crossroads

Not like previous cycles, macro forces are steering this one. The Crypto Volatility Index (CVI) is nearing pre-election lows – a bullish sign.

But, with RSI nonetheless above the underside and MACD flashing bearish, the charts aren’t screaming “purchase” Bitcoin simply but.

Supply: CVI.finance

This helps AMBCrypto’s earlier take: a pullback could possibly be the subsequent transfer earlier than any actual breakout.

Including to the uncertainty, leverage in derivatives is hitting new highs, making a full-blown deleveraging section removed from sure. Not like previous cycles, this one doesn’t promise a parabolic rally.

As a substitute, BTC may defy expectations as sentiment stays caught in limbo. It’s nonetheless lacking the “greed” set off wanted for liftoff.