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

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

Bitcoin [BTC] bulls have prevailed after what appears to be the longest consolidation in historical past, pushing BTC above $60K. Nevertheless, the momentum was transient, with BTC retracing beneath assist 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 assist ranges. 

Bitcoin Concern and Greed reveals excessive concern

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

At the moment, the Bitcoin market is experiencing average concern, making buyers extra cautious. If this development holds, it might improve the chance of a worth backside.

Supply: Bitcoin Journal Professional

Put merely, if concern persists, short-term holders would possibly promote, pushing costs down. Solely as soon as a worth backside is reached, a rebound might entice buyers to purchase the dip.

Due to this fact, monitoring STH exercise might present insights. If concern results in panic promoting, Bitcoin would possibly head towards a worth backside.

STH exit poses an actual menace

In response to AMBCrypto’s evaluation of the chart beneath, a spike within the damaging internet place of STH usually indicators a market prime, adopted by a bearish pullback.

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

Supply : CryptoQuant

Opposite to standard perception, if this development holds, the $60K — $61K vary would possibly act as resistance slightly than assist.

Due to this fact, if bulls fail to take care of management, BTC would possibly retrace to the $51K assist earlier than a possible correction.

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

Massive cohorts maintain the important thing to the highest

Whereas short-term holders regulate their positions as BTC hits essential resistance, long-term holders have been actively divesting to take care of the $60K stage as the following assist zone.

The netflow ratio, now at 0.30%, has doubled from yesterday, indicating growing assist from massive hodlers, as evidenced by this publish. 

Supply : IntoTheBlock

Learn Bitcoin’s [BTC] Worth 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 strong assist hinges on long-term holders, whose actions might problem the value backside thesis.