Bitcoin Sentiment Plummets to ‘Extreme Fear’ as BTC Struggles Near $60K

Bitcoin's Fear and Greed Index hit "extreme fear" for the first time since January 2023, as BTC failed to break the $60,000 mark twice in 48 hours.

The cryptocurrency market is experiencing a surge of anxiety as Bitcoin’s Fear and Greed Index plunges to "extreme fear" levels. This sentiment shift occurs amid Bitcoin's repeated failure to breach the critical $60,000 price point, casting uncertainty over the immediate future of the leading cryptocurrency.

Bitcoin's Fear and Greed Index plummets to 'extreme fear' as BTC fails to breach $60K.

Key Points:

Market Sentiment Deterioration:

• The Crypto Fear and Greed Index has dropped to "extreme fear," marking its lowest level since January 2023.

• This decline in sentiment reflects growing concerns among investors about Bitcoin's short-term prospects.

Bitcoin's Price Struggles:

• Bitcoin failed to break the $60,000 mark twice within 48 hours, causing further market apprehension.

• BTC briefly surged to $59,485 and $59,529 on consecutive days before retreating to around $57,499.

Influencing Factors:

• The recent market downturn is partly attributed to the repayment of Mt. Gox creditors, potentially releasing up to $8.5 billion worth of Bitcoin into the market.

• Large Bitcoin transfers by the German Government, involving 16,254 BTC (approximately $935 million), have also contributed to the negative sentiment.

Technical Indicators:

• Crypto and forex trader Justin Bennett highlighted the formation of a potential "rising wedge" in Bitcoin’s price chart, suggesting further downside risk.

Historical Context:

• The last instance of the index falling to "extreme fear" was in January 2023.

• The index previously peaked at "Extreme Greed" in March 2023, when Bitcoin exceeded its former all-time high of $69,000 set in November 2021.

Related: Germany's Bitcoin Seizure Sparks Market Decline: Analyzing the Impact and Criticism

As Bitcoin hovers around the $57,499 mark, down 23% from its all-time high, the market is engulfed in uncertainty. The persistent struggle to breach $60,000 and the influence of external factors like large-scale Bitcoin movements are driving the sentiment to "extreme fear." Investors and traders are advised to exercise caution and closely monitor the evolving market dynamics.

Source: Cointelegraph