Bitcoin Worry and Greed Index fuels fears of BTC’s worth drop

• Bitcoin grips average concern; if it persists, short-term holders could promote to interrupt even.
• Their exit may sign a worth backside.

Bitcoin [BTC] bulls have prevailed after what appears to be the longest consolidation in historical past, pushing BTC above $60K. Nonetheless, the momentum was transient, with BTC retracing beneath help and buying and selling at $59.8K at press time.

Consequently, the market sentiment has shifted again to concern, as bulls and bears battle for management of key help ranges. 

Bitcoin Worry and Greed reveals excessive concern

Traditionally, an index beneath 20 signified excessive concern, typically aligning with worth bottoms. Throughout these durations, new traders flood the market in search of low cost BTC, whereas short-term holders exit to interrupt even.

At present, the Bitcoin market is experiencing average concern, making traders extra cautious. If this pattern holds, it may enhance the chance of a worth backside.

Supply: Bitcoin Journal Professional

Put merely, if concern persists, short-term holders may promote, pushing costs down. Solely as soon as a worth backside is reached, a rebound may appeal to traders to purchase the dip.

Subsequently, monitoring STH exercise may present insights. If concern results in panic promoting, Bitcoin may head towards a worth backside.

STH exit poses an actual risk

In keeping with AMBCrypto’s evaluation of the chart beneath, a spike within the unfavorable internet place of STH typically alerts a market prime, adopted by a bearish pullback.

Briefly, STH exits usually happen when BTC hits key resistance, with the following decline reflecting their technique to exit earlier than costs fall.

Supply : CryptoQuant

Opposite to common perception, if this pattern holds, the $60K — $61K vary may act as resistance fairly than help.

Subsequently, if bulls fail to take care of management, BTC may retrace to the $51K help earlier than a possible correction.

To verify this pattern, AMBCrypto examined long-term holders. If $60K turns into the subsequent backside, it may current a buy-the-dip alternative.

Giant cohorts maintain the important thing to the highest

Whereas short-term holders alter their positions as BTC hits essential resistance, long-term holders have been actively divesting to take care of the $60K degree as the subsequent help zone.

The netflow ratio, now at 0.30%, has doubled from the day past, indicating growing help from giant hodlers, as evidenced by this put up. 

Supply : IntoTheBlock

Learn Bitcoin’s [BTC] Value Prediction 2024-25

$60K represents a key battle zone, with short-term holders viewing it as a possible market backside, bolstered by rising concern.

The reversal of $60K into stable help hinges on long-term holders, whose actions may problem the value backside thesis.