Bitcoin’s technical indicators and price crash indicate bearish market sentiment as traders and investors are reluctant to buy.
For the first time in years, the fear and greed index for Bitcoin (BTC) hit a low of 10 points, and the price also saw over 35% as the crypto market has lost a lot of belief in trading the market following a huge market crash across the space in the last few months, with no signs of recovery.
The month of October started with so much hype and expectation in the crypto market, as BTC traded around $120,000, with speculations that it could reach new all-time highs of $135k to $145k based on historical data.
However, things haven’t played out exactly as many traders, experts, and investors anticipated, as the price of Bitcoin crashed from a region of $120,000 towards $80k, which corresponds with its monthly key support zone, as the price crash resulted in many altcoins losing key support and market interest.
While the price in the last few days has shown a bit of a rebound to the upside, potentially towards $86,000, speculation suggests this could be a bear trap, as the price aims to trap bulls before crashing further to the downside. Technical indicators are currently at an all-time low.
Source – BTC Fear and Greed Index from CoinMarketCap
According to a real-time feed from CoinMarketCap, the price of Bitcoin currently trades at an all-time low when it comes to the fear and greed index, as the market is currently fearful and full of uncertainties, with many traders and investors remaining cautious when it comes to trading the crypto asset.
Despite the market giving many an opportunity to enter a position, there is speculation that the market could potentially trade lower following a minor price bounce to the upside. While this motion is making waves, a crypto reader, MerlinTrader, believes the market has given the brave and traders willing to take risks an opportunity to enter a long position.
Speaking on the current price action, the crypto trader insists Bitcoin’s price could replicate its previous-year moves after a 35% decline, with the price expected to rally by over 100% in the coming months, as he believes there is still more upside potential.
Additionally, Ardizor, another trader, has suggested that the Relative Strength Index for Bitcoin is at an all-time low, indicating that the price is expected to rebound to the upside soon. Where should we expect the price to be headed?
Source – BTC Price 1D Price Analysis from Tradingview
Bitcoin trades around the key demand zone on the daily and weekly timeframes, suggesting a potential rebound to the upside towards $107k.
A breakdown in price to the downside could see price trade lower towards $70k, which could affect the overall market sentiment ahead of the new year, but a minor price rebound is expected for the crypto asset currently.
Will BTC go back up?
The price of Bitcoin crashing to its yearly low of $80k has raised concerns among crypto traders who are not convinced of the price action.
Why did Bitcoin crash now?
The crypto market crashed due to market uncertainties and a shift in sentiment from bullish to bearish, as BTC trades with extreme caution.
Is BTC expected to rise or fall?
The price of Bitcoin is attempting to rebound from its key support zone of $86k as it aims for a short-term price gain towards $107k.
