Market Wallows In Extreme Fear As Bitcoin Struggles To Hold $20,000
June 24 2022 - 1:00PM
NEWSBTC
Bitcoin has been struggling in recent times and even with the
recovery, continues to find it hard to hold above the $20,000
level. With the crash has also come a significant decline in
investor sentiment which has reached some of its lowest points in
recent years. And even with bitcoin finally making the coveted
recovery above $20,000, it seems investor sentiment is finding it
hard to keep up as it remains firmly in the negative. Market In
Extreme Fear According to the Crypto Fear & Greed Index, a tool
that measures how investors are feeling towards the market,
investors are still very wary of the market. The index is currently
at a score of 11 which means that the market is still in the
extreme fear territory. Related Reading | By The
Numbers: The Worst Bitcoin Bear Markets Ever This comes as no
surprise given where the price of the leading digital assets in the
space has been. Even profitability has plummeted in this time
period, leaving a lot of investors holding bags of losses in the
market. Additionally, multiple events have also played integral
roles in getting investor sentiment to this point. Investor
sentiment in extreme fear | Source: alternative.me The first had
been the LUNA crash that had wiped billions of dollars off the
market. Then leading lending protocol had frozen withdrawals and
transfers, essentially blocking off thousands of investors from
being able to access their funds. With crypto being locked on
multiple platforms, investors are wary of putting any money in the
market for fear of losing it or having it locked on a platform.
Hence, inflows into the space have slowed significantly in wait for
better sentiment. Where Is Bitcoin Headed? Bitcoin had fallen as
low as $17,600 in its last week’s downtrend. This was below the
previous cycle peak, triggering fear among investors that there may
be no support. However, the digital asset had found support and had
since recovered back above $20,000 where it is now resting.
Nevertheless, the digital asset continues to struggle. Holding
above this level has been a herculean task, especially with the
significant resistance being mounted by bears at the $21,000 point.
Moreover, some in the space expect the price of the digital asset
to keep declining from this month. BTC recovers above $20,000 |
Source: BTCUSD on TradingView.com Going along with the halving
trend that bitcoin has followed since its inception, it may be at
least another year before the digital asset makes a recovery
towards its previous all-time high. Looking at historical data
shows that the next bull market may likely start in May 2024, when
the next halving occurs. Related Reading | Bitcoin Perpetual
Open Interest Suggests Short Squeeze Led To Crash Bitcoin is now
trading above its 5-day moving average for the first time since the
crash. However, this does not essentially mean a bull trend is
underway. Rather, it shows that a certain level of stability is
beginning to return to the market. Featured image from
Guardian.ng, chart from TradingView.com Follow Best Owie on Twitter
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