Bitcoin Traders Sink Into ‘Fear’ As Price Crashes Below $58,000

Share This Post

Data shows that Bitcoin traders’ sentiment has declined into ‘fear’ after the price crash the cryptocurrency has seen during the past 24 hours.

Bitcoin Fear & Greed Index Is Now Suggesting A Fearful Market

The “Fear & Greed Index” is an indicator created by Alternative that tells us about the average sentiment currently held by traders in the Bitcoin and wider cryptocurrency market.

The index uses a scale from zero to a hundred to represent the sentiment. The score is calculated based on five factors: volatility, trading volume, social media sentiment, market cap dominance, and Google Trends.

All values of the indicator above 53 signify the presence of greed among the investors, while those below 47 imply fear in the market. The region between these two cutoffs naturally corresponds to a neutral mentality.

Now, here is what the Bitcoin Fear & Greed Index looks like currently:

Bitcoin Fear

As is visible above, the Bitcoin Fear & Greed Index has a value of 44, suggesting that the sentiment is just inside the fear territory. This is a change from what it has been like during the last few days.

The chart below shows how the indicator’s value fluctuated over the past year.

Bitcoin Fear & Greed Index

The graph shows that the Bitcoin Fear & Greed Index had been in neutral territory during the first three days of this month, but today, on the fourth, the sentiment has plunged.

The reason behind this worsening mentality is the crash that the cryptocurrency’s price has witnessed during the past day, which has taken its price under the $58,000 level.

It’s also visible in the chart that the neutral sentiment in the first three days of July showed a sharp improvement over how June had ended. The metric had hit a low of 30 on two occasions to end the month as a culmination of the bearish momentum BTC had been facing.

As the bearish winds seem to be picking back up for the asset now, the recovery in the sentiment may be lost soon. This may not entirely be, however, bad news for the coin.

The Bitcoin price has historically tended to move against the crowd’s expectations. The chances of such a contrary move to take place grow the larger this expectation becomes. That is the more the Fear & Greed Index points in any direction.

Major tops and bottoms have generally occurred when the asset has been inside the extreme greed and fear regions, respectively. Extreme greed is the territory where the index attains values higher than 75. Similarly, extreme fear occurs under 25.

If the indicator’s value continues to decline from here, it falls into the extreme fear it could be to watch for, as they may also lead towards a potential bottom for Bitcoin this time.

BTC Price

At the time of writing, Bitcoin is trading at around $57,900, down almost 6% in the past seven days.

Bitcoin Price Chart

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Bitcoin Price Watch: Struggles at $84K—Will Bulls Take Control?

Bitcoin traded at $84,222 on March 15, 2025, with a market capitalization of $167 trillion, a 24-hour global trade volume of $2599 billion, and an intraday price range between $82,705 and $85,139,

Major leadership shift at HK Asia Holdings as Bitcoin Magazine takes the helm

In a significant move that solidifies Bitcoin Magazine’s presence in Asia, HK Asia Holdings (01723HK) has announced key leadership changes effective March 14, 2025 This development marks a

Top Altcoins to Invest in as Pump.fun Mania Fizzles Out

The meme coin frenzy that took the crypto world by storm is now showing signs of exhaustion  Platforms like Pumpfun, which allowed anyone to launch altcoins in minutes, are experiencing a sharp

Bitcoin Breaches 12-Year Support Line Against Gold – Is The Bull Run Over?

As Bitcoin (BTC) struggles amid the latest crypto market pullback – failing to decisively break past the $84,000 resistance – gold (XAU) continues its impressive rally, soaring to a

Pakistan forms new ‘Crypto Council’ to regulate blockchain and digital assets

The government of Pakistan has established the Pakistan Crypto Council (PCC) to oversee the integration and use of blockchain technology and digital assets into the nation’s financial landscape

Stablecoins Thrive as Crypto Stumbles: A $4.23B Growth Spree in 2 Weeks

While the crypto market contracted over the past two weeks, the stablecoin sector has ballooned by $423 billion since March 1, defying the broader trend Digital Dollars Dominate With Over 8% of