YEREVAN (CoinChapter.com) — The Crypto Fear & Greed Index, a key measure of market sentiment toward Bitcoin, has seen Bitcoin plummet to “extreme fear” for the first time since January 2023. This decline signals increased anxiety among investors as Bitcoin struggles to maintain upward momentum. According to Alternative.me, the index’s source, the drop reflects the current market conditions.
The index considers market volatility (25%), trading volume (25%), Bitcoin’s dominance (10%), and trends (10%). Previously, it also included market surveys, but this metric is currently paused. The index last reached “extreme fear” on January 9, 2023.
Bitcoin Faces $60K Resistance, Forms Potential Downside Pattern
Bitcoin’s price has faced significant resistance, failing to break above the $60,000 mark twice in the last 48 hours. On July 10, Bitcoin rallied to $59,485 but quickly fell back to $57,000 within 12 hours. A similar pattern occurred on July 11, with Bitcoin reaching $59,529 before dropping again.
Crypto and forex trader Justin Bennett noted on July 11 that Bitcoin’s price had been rejected at $60,000 “yet again,” suggesting a potential “rising wedge” formation, which often indicates further downside.
Mt. Gox Repayments and German Sales Add Pressure to Bitcoin Market
Recent developments related to Mt. Gox have also affected market sentiment. Since July 5, Mt. Gox has been paying back its creditors, potentially releasing up to $8.5 billion worth of Bitcoin into the market. This influx of Bitcoin has added selling pressure, impacting Bitcoin’s price recovery.
Another factor affecting Bitcoin’s price is the large sales by the German Government. Recently, the government transferred 16,254 BTC, worth approximately $935 million at current prices, to market makers and exchanges. This significant sale has contributed to the overall downward pressure on Bitcoin’s price.
Bitcoin Drops 23% from Peak as Fear & Greed Index Declines
Bitcoin’s price has declined steadily since reaching an all-time high of $69,000 in November 2021. The Fear & Greed Index, which previously reached “extreme greed” with a score of 90 on March 5, has been trending downward. The index recently saw Bitcoin plummet to “extreme fear”. Currently, Bitcoin is trading at $57,499, down 23% from its all-time high, according to TradingView data.
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