- Bitcoin’s failure to break $60,000 twice in two days pushed the index to its lowest level since 2023
- Historical data showed that BTC could rise 28% within a month or two
In a surprising turn of events, the Crypto Fear and Greed Index moved to the extreme fear level. At the time of writing, the index measures sentiment around Bitcoin [BTC] and other cryptos was 25.
Behavior on the market is mainly emotional due to the high volatility. Sometimes market participants become greedy and do not want to miss price increases. Other times, corrections force fear into the market.
The Crypto Fear and Greed Index ranges from 0 to 100. Based on social media data, market trends, and project dominance, values close to 100 indicate extreme greed. On the other hand, numbers close to zero indicate fear.
The index is at 25 represented the lowest level since September 2023. At the time, Bitcoin was valued on the charts at around $25,131. However, by October of the same year, the price had risen to $32,960.
Source: Glassnode
Just like last time, the decline in the index could be related to BTC. This is due to the performance of the price in the last 48 hours.
According to AMBCrypto market analysis, Bitcoin attempted to rise above $60,000 on July 10. Unfortunately, it failed. Once again the crypto approached the key region on the 11th but was rejected.
As a result, market sentiment changed, with participants showing glimpses of distrust in the coin’s short-term potential. However, if we assume the impact of the Crypto Fear and Greed Index on the price in 2023, Bitcoin could rise within one to two months.
Furthermore, if the pattern rhymes, BTC could see a 28% increase within the aforementioned period. At the time of writing, Bitcoin’s price was $56,948. If the price rises 28% between August and September, it could trade at $72,893.
However, despite the historical analysis and bullish potential, BTC holders should be wary.
This is because of the actions of the German government. In recent weeks, the country has distributed billions of Bitcoin. This was also one of the reasons why the Crypto Fear and Greed Index reached extreme fear levels. In fact, on July 12, the government sold another round worth $154.60 million.
Source: Lookonchain
Should this continue into next month, it could become challenging for BTC to reach the forecast level above. However, if the selling stops, Bitcoin could try to reach $70,000 again in a few weeks.
Read Bitcoin [BTC] Price forecast 2024-2025
That said, Bitcoin is doing well to absorb the selling pressure, according to analyst Michaël van de Poppe. In his message on Xhe noticed,
“It is incredible that this selling pressure has been absorbed and the price of Bitcoin is around $60,000.”