A common similarity between the more traditional markets and that of crypto is that of the ‘extreme fear’ which seems to show itself every now and then. Most recently, this level of fear has been exhibited by numerous investors regarding Bitcoin (BTC)’s recent dip to beneath $30,000.
The flagship crypto had failed to once again reach the $30,000 mark following the loss of support earlier today, which had led to the Fear & Greed indices rapidly racing one another to see who will get to the bottom first. As a result of the price dip for Bitcoin, most of the altcoins are also currently deep in the red.
$30,000 seemingly out of reach
The BTC/USD pair was observed to have been trading somewhere along the lines of $20,000 to $30,000 earlier today. Bitcoin experienced a massive decrease in price lately, and the most recent price action only made matters worse for the biggest crypto by market cap.
The price action had added to the pre-existing losses in order to guarantee a daily negative in returns by -6%.
Furthermore, the aforementioned Fear & Greed Index for the more traditional markets utilize a wide variety of different characteristics to successfully ascertain the current sentiment of the investors. According to this index, the sentiment has now fallen to the ‘extreme fear’ level earlier today, with a measurement of 17/100.
The cryptocurrency Fear & Greed Index was around the same area when it had dipped to 19/100, which is also considered to be a level of ‘extreme fear’.
What to expect
Understandably, traders were expectedly very cautious and continue to be as of now. Some believe that Bitcoin shall test at $24,000 before all is said and done. Rekt Capital managed to summarize the current situation on the spot markets, and it had been concluded that the downside would most likely prevail. Bitcoin has not succeeded in maintaining its bullish momentum, and sell-side pressure could mount further on the largest crypto.
In related news, the altcoins had compounded pre-existing weaknesses during the fall of BTC, and a majority of the alternative coins recorded weekly losses of 20% and more. Ethereum (ETH) continues to trade beneath the $1,800 mark as of this time.
Nevertheless, bulls are hopeful that BTC shall break through $30,000 soon and that the bear market will eventually end sooner rather than later in order for not only Bitcoin but the rest of the altcoins to be in the green once more.