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Market Watch: Crypto Shifts from Greed to Fear, What’s Next?

  • Bitcoin faces resistance at $105,000 as market sentiment shifts from greed to fear.
  • Over $480M liquidated in 24 hours, signaling increased crypto market volatility.
  • Fear & Greed Index drops sharply, marking the first fear phase since October 2024.

Following a long period of optimistic price performance, the crypto market exhibits signs of uncertainty. In an X post, market analyst Ali indicates that fear has replaced greed for the first time since October. This market shift signals a significant point for traders and investors who should consider upcoming corrections along with their next investment plans. 

Price Action Analysis

Bitcoin has displayed resistance in its price movements in recent weeks. After briefly breaking resistance, it failed to sustain an upward trend, settling below $100,000. A rejection from above the $105,000 level brought BTC’s current price to $99,454.37. Analysts suggest Bitcoin must consolidate below $105K before regaining bullish momentum.

The market price currently moves between the support at $95,000 and the resistance at $105,000. A notable price decrease occurred because investors demonstrated altering sentiment through changes observed in the Fear & Greed Index. The current market shift indicates that a correction process may start or become necessary for price consolidation until new market momentum develops.

Technical Indicators: Are We Facing a Correction? 

According to indicators including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), upward price momentum seems to decrease. Bitcoin shows weakening momentum because its Relative Strength Index stands beneath the 70 overbought threshold after its price surge. The bearish crossover pattern on the MACD signal points to possible market preparations for a downward movement.

Source: TradingView

Market indicators and recent fear-based market sentiment suggest Bitcoin will experience additional volatility shortly. A price that falls beneath the $95,000 support zone would trigger a more extensive correction.

Related: Bitcoin and Altcoins Crush Led to $2.23B Crypto Liquidation

Crypto Total Liquidation

The cryptocurrency market suffered over $480 million in liquidations during the last 24 hours, while Bitcoin contributed $118.80 million to this total value. The rapidly increasing liquidations demonstrate growing fear and volatile behavior when uncertainty exists. The increase in panic-level market uncertainty during this period puts additional strain on Bitcoin’s market value.

Source: Coinglass

Conclusion: Is a Correction on the Horizon? 

Technical indicators and price history indicate that Bitcoin markets face a critical decision point. Current market sentiment and evaluation of essential support and resistance levels indicate that Bitcoin could lead to a price correction. Market participants should exercise careful behavior because Bitcoin indicates heightened short-term price fluctuations.

Recent market developments support that a downturn may occur since price movements reflect weakness and technical signals suggest downtrends. These strategic levels signal that Bitcoin needs careful management during its crucial phase. Support and resistance levels demand close observation by investors since market volatility seems likely for the upcoming weeks.

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