The crypto market is in turmoil after the price of Bitcoin dropped to $20,000. This remains an important technical level for the digital asset because it is beyond the previous cycle peak. So, investors everywhere will be watching with bated breath to see if Bitcoin takes this level. This in turn dampened investor sentiment during this period, leading to lower fear and greed indices.
The crypto index is set at 25
The Crypto Fear and Greed Index is an indicator that combines multiple metrics to provide an overall score to represent investors’ sentiment on the market. He puts these into four categories, and right now, investor sentiment is at the lowest of these.
The recently updated Fear and Greed Index puts the market at 25 points in the worst fear zone. This index comes after a more than one-month low of 20, indicating an increase in positive sentiment. last day.
However, the current situation is not very good for the crypto market. With such a feeling, investors are wary of putting any money into the market, creating panic and leaving the playing field for sellers. This works to further lower the value of digital assets in space.
Bitcoin struggles with $20,000
The $20,000 mark is one of the hardest levels for bitcoin to maintain. Volatility always seems to rise whenever Bitcoin reaches this level, leading to expensive price movements. This way, the digital asset will keep going above and below $20,000.
However, bulls continue to struggle at this level as there is no significant support below this level except for $17,600. This cycle’s low, which fell below the previous cycle’s peak, puts Bitcoin in a dangerous position.
Historical data has seen Bitcoin down at least 80% from its all-time high, and $17,600 may not be a market low if the market follows this trend to find the bottom of the bear market. Bitcoin is currently down about 70% from its all-time high. An 80% discount makes it around $15,000.
However, it is important to consider that Bitcoin has violated various historical trends during this cycle. For example, the price has never fallen below the previous cycle peak, so an extension of this gap could see Bitcoin’s expected 80% decline.
Featured image from CNBC, chart from TradingView.com
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