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You could argue that the cryptocurrency market maintains its confidence despite the Bitcoin price experiencing a significant drop to $94,000. Although price action says otherwise, this confidence is highlighted by several predictions from crypto analysts on social media and on TradingView, which covers several cryptocurrencies.
Amid the price decline and market optimism, the Crypto Market Fear and Greed Index continues to point to greed, leaning toward the idea of a temporary dip before a broader recovery.
Bitcoin Price Crash Halts Bullish Momentum
The crypto industry has largely shown bullish momentum in 2024, with many cryptocurrencies reaching new multi-year highs. This momentum was led by Bitcoin, which broke its 2021 all-time high of $69,000 in mid-2024. eventually break above reached the psychological level of $100,000 for the first time on December 5.
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However, Bitcoin’s price action since crossing the six-figure price threshold has been largely down full of corrections. Although the price peaked at $108,135 on December 17, the past twelve days have been marked by price declines. Remarkably, Bitcoin has been corrected as low as $92,600 in the last seven days, essentially leading to a cascade of declines among other cryptocurrencies and stall the bullish momentum.
Bitcoin’s downturn has taken many crypto traders by surprise, given its strong rally in recent months. Analysts attribute this correction to profit-taking by some long-term holders and a temporary slowdown in market activity.
Crypto market sentiment remains greedy
Despite the recent price drops, Suggesting HODLing trends that the cryptocurrency market remains on track to continue its rally into 2025. This sentiment is reflected in the Fear and Greed Index, which continues to hover in the greed zone, indicating confidence among investors. The index is derived from a combination of key metrics including market volatility, trading volume, social media sentiment, Bitcoin dominance, Google search trends and surveys. Each component is carefully weighed to gauge the psychological state of the market.
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At the time of writing, the Crypto Fear and Greed Index shows to alternative.me, is set to a value of 72, which is within the Greed threshold. This reflects investor confidence across the various market indicators and suggests that traders are seeing the dip as a buying opportunity rather than a reason to panic.
This feeling of greed is passed on through a number of purchasing trends about notable cryptocurrencies. For example, on-chain data from crypto analytics firm Santiment shows that Dogecoin whales purchased more than 90 million DOGE tokens in the last 48 hours. With this in mind, analysts are optimistic about a broader market recovery in the coming weeks. Technical indicators point to a Bitcoin-led recovery if it can hold above support levels around $92,000.
At the time of writing, Bitcoin is trading at $94,400 and has fallen 12.8% since hitting $108,135 on December 17. According to According to crypto analyst Ali Martinez, such corrections (between 20% and 30%) are the best thing that can always happen to Bitcoin in any bull cycle.
Featured image created with Dall.E, chart from Tradingview.com
