- Bitcoin greed has waned, with a noticeable lack of risk appetite among investors.
- However, a dip could soon prompt investors to HODL.
The past 24 hours have been a whirlwind for the crypto market, with Bitcoin [BTC] reaching the $100,000 milestone before plummeting more than 5% later in the day.
Typically, such dips attract bargain hunters, but subdued investor greed signals waning enthusiasm for stock investing.
This bull run has already created countless millionaires and billionaires who have cashed in significant profits. Now the focus shifts to those betting on Bitcoin’s next peak as a long-term investment.
What remains crucial is the balance between these opposing forces: will profit takers dominate, or will risk takers push for outsized returns?
A lack of risk appetite is holding Bitcoin back
On the one-day timeframe, Bitcoin’s price chart is showing mixed signals: a bearish MACD crossover and an RSI in neutral territory, despite Bitcoin reaching $100,000.
While there is still room for growth, it all comes down to whether investors are willing to embrace the volatility in exchange for the chance of multiplied profits.
Unlike the previous ATH in March, it was the greed index has remained below 90 this time, indicating that no risks were taken. This pushes Bitcoin back into the FUD (fear, uncertainty, doubt) zone.
Psychologically, this could provoke strong resistance from both new and seasoned investors, with many likely opting to cash out for immediate gains rather than holding on for the long term.
As a result, the $100,000 milestone didn’t even last a day, with profit takers dominates the alternating currents. Both short-term and long-term bondholders benefited from gains from previous dips, while risk takers failed to intervene and neutralize the selling pressure.
If this trend continues every time Bitcoin reaches $100,000, it could create an endless loop, where the lack of greed gives profit takers a better chance to escape the market before prices can truly sustain higher levels – creating conditions. which are ideal for a short squeeze.
So should you also cash out if BTC reaches $100,000?
After the new ATH of $103,629, Bitcoin’s price closed at $92,285 – the low of the day, creating another dip buying opportunity, especially for short-term traders looking to take advantage of a potential recovery.
As a result, Bitcoin volume rose 5% to approximately $124 billion, with currency outflows (coins withdrawn from exchanges) continuing to dominate trading platforms, indicating strong investor conviction.
Source: CryptoQuant
Whales have also seized the opportunity by picking up 600 Bitcoins at a bargain price of $98,083.
Together, these factors point to a potential bottom formation around $96,000, where interest from both investors and traders could converge, paving the way for an even bigger recovery.
This is positive news for bulls. A confirmed bottom at $96,000, with new capital entering the market, would push Bitcoin only 4% in realized gains by the time it reaches $100,000.
These modest gains may not lead to a significant sell-off, as many investors are unlikely to break even, encouraging them to HODL.
Read Bitcoin’s [BTC] Price forecast 2024-25
Therefore, the next major price range to watch is $96,000 – $98,000, where notable activity is expected. Renewed greed in this area could provide further impetus.
So this could be the optimal time to buy for a potential breakout of $103,000. However, monitoring liquidity within this price range will be crucial in the coming days.