Today's Panic and Greed Index has returned directly to the bear market. Are you okay after last night's plunge?
Will the impact of the Mentougou incident on prices last?
Is it a rebound or a reversal?
According to Binance data, today’s panic and greed index is 30 (yesterday was 51), and the level is panic.
The high probability of this round of correction is related to the news that Mt. Gox plans to start repaying its creditors in July.
News reports indicate that Mt. Gox plans to begin returning Bitcoin to its creditors in July, an important development following the 2014 hack.
History shows that every major news release related to Mt. Gox will cause an early correction in the price of Bitcoin. By analyzing the media coverage of the past three Mt.Gox events and the Bitcoin price reaction, we can observe the following pattern:
.March 2023: After the Mt. Gox news was released, the price of Bitcoin fell by more than 10% in the short term, but soon recovered and continued to rise.
.November 2023: The Mt. Gox incident once again became the focus, and Bitcoin then ushered in a significant price increase.
.January 2024: After Mt. Gox-related reports, the price of Bitcoin rose rapidly and sharply.
These events indicate that whenever the Mt. Gox incident is widely reported by the media, the short-term correction in Bitcoin prices seems to be a precursor to a market rebound. This phenomenon may indicate that the market has formed an expected reaction pattern to the news about Mt. Gox, that is, selling in the short term after the news is released and buying in the expected long term.
According to ChainCatcher reports, crypto-asset investment research institution EMC Labs analyzed that BTC fell sharply to $58,400 yesterday, approaching the adjustment low in early May but not falling below it. It retested the lower edge of the new high adjustment box and made adjustments since October last year. The upward trend line formed was tested downward.
According to the eMerge engine, short-term traders as a whole have entered a state of floating losses. They sold 28,000 BTC yesterday and realized losses of hundreds of millions of dollars. The current market fear & greed index has dropped to 30 and entered the "fear" range. Based on technical indicators, support levels, and market conditions, EMC Labs determined that BTC’s mid-term adjustment is most likely over, and the market will rebound at $58,400.
