The recent price drop below $59,000 for BTC means the Fear & Greed Index is currently at 25, meaning investors are in complete fear.
Long positions above $123 million have been closed, meaning that traders expecting the price to rise were wrong as the market rapidly declined.
Bitcoin's price movement suggests a waning bullish momentum, attributed to the lack of new positive catalysts.
The bull run continues in the crypto market, but the price of the largest cryptocurrency, Bitcoin, has dropped below $59k. This decline has caused unease in the market, leading to a rise in the Fear & Greed Index. The investor sentiment index went down to the “extreme fear” zone and only got 25 out of 100. This sharp drop emerged after Bitcoin traders dipped to an intraday low of $58,134 on Monday, with investors remaining cautious given the volatile nature of the cryptocurrency markets.
https://twitter.com/HTX_Global/status/1822841689540538667
A massive selloff has ensued due to the price plunge, and more than $123 million have been liquidated as per the figures provided by CoinGlass. This shows that traders expected Bitcoin to increase in value, and hence, to place their orders in anticipation of such an event, they needed confidence. The downturn also shows some susceptibility to the current market, where huge fluctuations can cause massive losses in a short time.
Prior Crashes and Lack of Bullish Catalysts
This is not the first time Bitcoin has had such high volatility levels in its price and value within the market. Last week alone saw a major dump, with Bitcoin testing a low of $49,557 on Bitstamp.This decline was mainly said to have been caused by a spillover effect from the world’s stock markets.
However, Bitcoin swiftly rebounded and returned to the $60k mark in days led by institutional demand. Even though there has been a recovery from this zone, the current price action has indicated that the bulls are becoming weak.JPMorgan analysts have observed that certain fundamental drivers have not been factored into the current Bitcoin price. With the S&P 500 and Nasdaq futures remaining relatively flat, it suggests that internal factors may be influencing Bitcoin's bearish market. Market participants are eager to see if this level will hold steady and whether the price of Bitcoin will stay near $59,000 or decline.
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