Greed

Plunge

Bitcoin

Impact

when

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin is currently experiencing moderate fear, which could lead to a price bottom if it persists.</li>
 <li>Short-term holders’ exit and long-term holders’ actions significantly influence Bitcoin’s market trends.</li>
</ul>
<p>Bitcoin [BTC] bulls have recently pushed the cryptocurrency above $60K, marking a significant milestone. However, the momentum was short-lived as BTC retraced below its support level, trading at $59.8K at the time of writing.</p>
<p>This shift in momentum has resulted in a change in market sentiment, with a renewed sense of fear creeping in as bulls and bears grapple for control of key support levels.</p>
<h2 id="understanding-fear-and-greed">Understanding Fear and Greed</h2>
<p>Historically, a fear and greed index below 20 has indicated extreme fear, often coinciding with price bottoms. During such periods, an influx of new investors seeking cheap BTC is observed, while short-term holders often exit to break even.</p>
<p>Currently, the <a href="https://coineagle.com/price/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> market is experiencing moderate fear, causing investors to tread carefully. If this trend continues, it could potentially lead to a price bottom.</p>
<p>In essence, if fear continues to persist, short-term holders may sell, leading to a decrease in prices. Only once a price bottom is reached, a rebound could attract investors to buy the dip.</p>
<p>Thus, monitoring the activity of short-term holders could provide valuable insights. If fear triggers panic selling, Bitcoin may head towards a price bottom.</p>
<h2 id="impact-of-short-term-holders-exit">Impact of Short-Term Holders’ Exit</h2>
<p>A spike in the negative net position of short-term holders often signals a market top, followed by a bearish pullback. In other words, exits by short-term holders typically occur when BTC hits key resistance levels, with the subsequent decline reflecting their strategy to exit before prices fall.</p>
<p>If this trend continues, the $60K — $61K range may act as resistance rather than support. Consequently, if bulls fail to maintain control, BTC might retrace to the $51K support before a potential correction.</p>
<p>On the other hand, long-term holders’ activities could provide a buy-the-dip opportunity if $60K becomes the next bottom.</p>
<p>While short-term holders adjust their positions as BTC hits crucial resistance, long-term holders have been actively divesting to maintain the $60K level as the next support zone.</p>
<p>The netflow ratio, currently at 0.30%, has doubled from the previous day, indicating increasing support from large hodlers.</p>
<p>The $60K mark represents a crucial battle zone, with short-term holders viewing it as a potential market bottom, reinforced by growing fear. The conversion of $60K into solid support depends on long-term holders, whose actions could challenge the price bottom thesis.</p>

Bitcoin’s Fear and Greed Index Sparks Concern Over Possible BTC Price Plunge

Table of Contents

CoinEagle.com

Other articles published on Sep 19, 2024

Vana Secures $25M in Funding to Overcome AI Data Wall

Most Trending Cryptocurrencies on Polygon – Argocoin, Rogue Coin, Sponge

RISE, the Gigagas Layer 2, announces its $3.2M Seed Round

Indodax Exchange Loses $20.5M in Suspected Lazarus Group Cyberattack

Friend.Tech Faces Uncertain Future After Transferring Control of Smart Contracts

TON Foundation Partners with Curve Finance to Launch Stablecoin Swap Project

Join our free newsletter for daily crypto updates!