Last Friday, Bitcoin (BTC) took a sudden nosedive, dropping below its support level of $56,000. This sharp drop had the crypto market feeling nervous, and Bitcoin hit its lowest point in a month at around $52,500. As a result, the Fear & Greed Index, which tracks market sentiment, sank to new lows, reflecting the anxiety gripping investors.
Even though Bitcoin’s price and sentiment have started to recover a bit, the market remains uncertain, and it’s clear that many of us are still on edge.
Another Hit
Bitcoin’s price struggled all week, with $56,000 acting as a safety net for the bulls each time it was tested. But on Friday afternoon, that support level finally gave way, and we saw the price plummet to $52,500, creating a sea of red across the market.
This drop was the lowest we’ve seen since August 5, a day some of you might remember as ‘Black Monday.’ Back then, Bitcoin tumbled more than 20% to a low of about $49,500. Last Friday’s crash brought the Fear & Greed Index down to 22, showing us that extreme fear had taken hold.
This is the lowest reading since early August when the index fell to 17, a level not seen since mid-2022. It is obvious that the market sentiment is rather shaky, and that investors are feeling some pressure.
Bitcoin and Sentiment Begin to Recover
Late on Friday evening, Bitcoin reached its low point of $52,535 but slowly began to climb back. By that night, it had crossed back over $54,000, where it has mostly held since, and has started moving up on Monday since the start of Asia trading hours to $54,800 at the time of writing. Even though the price is still walking a fine line, this slight recovery has helped ease some of the fear that took over the market. The Fear & Greed Index now sits at 26, still very much in the ‘fear’ zone, but it’s an improvement from where we were.
Bitcoin Fear and Greed Index is 26. Fear
Current price: $54,852 pic.twitter.com/v6g8Yg1SPI— Bitcoin Fear and Greed Index (@BitcoinFear) September 9, 2024
Looking ahead, the next big test for Bitcoin is at the $56,000 level. If we can push through this, the focus will likely shift to the next resistance around $58,000. For now, though, it’s all about staying steady and hoping Bitcoin avoids another slip.
As we reported earlier, it’s crucial not to panic and to view Bitcoin’s price within its historical context. There is an upside nevertheless. Although we are not yet seeing sellers exhaustion, history shows that in every year with a halving event, Bitcoin has seen a strong upward move in the last quarter.
Stay tuned to HowToBuyBitcion.org, keep your eyes on the charts, and let’s see how this plays out.