The Bitcoin fear and greed index has significantly dropped down to 34 as the market enters a state of fear. Could this be the perfect time to buy or is the price of Bitcoin going down even further?
Bitcoin Market Cycle
As expected from the Bitcoin market cycle, the market has entered the FEAR state with the price of Bitcoin dropping down to $56K from its recently achieved ATH at $69K. While the moon boys are pushing for Bitcoin to go to $100K, others say that the correction is only expected after reaching the recent ATH.
One thing that investors want to avoid, as of the moment, is a potential bull trap that sees the price of Bitcoin drop, increase just a little bit,then drop even further. Although bull traps do not always happen, the risk of them happening is still there given the current direction of Bitcoin.
Bitcoin Price Prediction
At the moment of this writing, BTC has dropped past $59K and is trading around $55K with the RSI indicator stating that the currency is below 30. Within the 4hr time frame, Bitcoin can be seen as extremely bearish with its moving average showing a downtrend with no indication as to when it will stop.
For hodlers that bought in early, however, this might not seem that alarming as the cryptocurrency still has a lot of room to grow with other analysts also believing that BTC could trade to $100K before 2022. Of course, there are also others that believe in a market crash like Robert Kiyosaki and Michael Burry.
Big Short Investor Michael Burry
Michael Burry, according to Yahoo finance, sold just about everything he owned in the third quarter in order to protect himself from what he expected was the "mother of all crashes." Michael Burry still owns stock in three companies namely Lockheed Martin, Now Inc., and Scynexis.
According to a tweet by Bitcoin Fear and Greed Index, the current status of the market is now at fear. Although the market is not yet at its extreme fear face yet, the market is currently at 34 making it significantly bearish as of the moment.
Whale Movement Spotted
As of the moment, it's hard to estimate whether there will be a market reversal soon or if the price of Bitcoin is expected to fall even more. According to the moving average indicator, however, the price of Bitcoin could still be going down with no reversal in sight as of the moment.
CoinTrendz on Twitter showed a number of Whale transactions over the past 24 hours. Just recently, there were $2.06M, $1.60M, $1.29M, $1.24M, and $1.18M transactions made through the BTC/USDT pair on Binance.
Before investing in any crypto asset, it is important to DYOR since the market still remains highly unpredictable and any form of catalyst could trigger either a bullish or bearish run.
Related Article: 90 Million USDT Transferred from Unknown to Binance | Buy the Dip?
This article is owned by Tech Times
Written by Urian B.
