Crypto market shows âextreme fearâ after Bitcoin's decline
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Bitcoin (BTC) fell by 3.23% on Thursday due to worries about a sluggish U.S. labour market.
Possible effects for traders
U.S. jobs data that released yesterday was below economists' forecasts, intensifying expectations about a potential interest rate cut by the Federal Reserve (Fed).â
The price decline resulted in $94.26 million in BTC liquidations over the past 24 hours, with the majority coming from traders who had bet on a rise in Bitcoin's price, according to Coin-Glass data.
The Crypto Fear & Greed Index, which measures the market sentiment on a scale of 100, dropped towards 22 today, signalling âextreme fearâ.
This marks a seven-point decline from the previous day's sentiment.The price of Bitcoin has been steadily declining over the past few days after reaching a high of $64,000 late last month, now trading around $56,000. However, one well-known analyst believes it could soon soar above $130,000.
In a post on TradingView, cryptocurrency analyst MetaShackle highlighted that Bitcoin's chart is forming an âabsolutely massiveâ cup and handle pattern, which could trigger a significant price increase. The analyst remarked that there has ânever been a formation like this in the history of crypto, and it's sure to be an incredible run to levels that will shock the worldâ.BTCUSD rose slightly during the Asian trading session. Today, crypto traders should focus on the U.S. nonfarm payroll (NFP) report due at 12:30 p.m. UTC, which will cause increased volatility and affect the U.S. dollar and all related pairs. If the numbers exceed expectations, the U.S. dollar will rise, while BTC may fall below $55,500. Otherwise, BTCUSD may rise towards $59,000. BitMEX co-founder Arthur Hayes predicts BTCUSD could decline by another 12% over the weekend, below $50,000.Not trading advice. Consider your risks before making a decision.