Since bitcoin’s price fell to $20,000., the crypto market is at odds. The price of bitcoin fell to $20,000. This is still an important technical level. It’s also above the previous cycle peak. Investors across the sector are anxious to find out if bitcoin can hold that level. This has, in turn, led to a decline in investor sentiment during this time, causing the Fear & Greed Index to plunge low.
Crypto Index At 25
The Crypto Fear & Greed Index is an indicator that draws from a number of metrics to give an aggregate score to represent how investors are feeling toward the market. This index scores these in four different categories. At the moment, investors’ sentiment is lowest.
In its most recent update, the Fear & Greed index places the market in the extreme fear territory with a score of 25. After the index hit its lowest level of 20 within more than a week, this indicates some increase in positive sentiment over the past day.
The crypto market is currently in a bad spot. An investor’s reluctance to put money in the market can cause panic, which will leave the marketplace open for sellers. This causes digital assets to drop even more.
Bitcoin Struggles with $20,000
It has been difficult for bitcoin to keep at $20,000 since its inception. Bitcoin’s volatility is always high at these points, which leads to volatile price movements. The digital asset keeps moving above and below $20,000.
The bulls are still fighting at this level, as there isn’t any support lower than $17,600. This cycle’s low, which had plummeted below the previous cycle peak, puts bitcoin in a perilous position.
Histories show that bitcoin has fallen at least 80 percent from its high point for the bottom in the bear market. This trend could mean that $17,600 is not the market’s bottom. Bitcoin has fallen by 70% from the peak of its highs, as is currently evident. It would be around $15,000 if it experienced an 80% decline.
It is worth noting that Bitcoin has shown different trends in the past during this cycle. One example of this is bitcoin’s historical price high. If it continues to rise, then the potential for it to overcome its expected 80% decline.
CNBC featured image, Chart from TradingView.com
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