Bitcoin’s Struggle to Break $60,000 as Fear and Greed Index Plummets

The Bitcoin Fear and Greed Index has plummeted to 25, indicating “extreme fear” among investors. 

This decline comes as Bitcoin struggles to surpass the crucial $60,000 resistance. Over the past two days, BTC has attempted and failed twice to breach this threshold, according to data from TradingView.

Persistent resistance at the $60k mark

Bitcoin’s price action has been tumultuous, with attempts to exceed $60,000 falling short. On July 11, Bitcoin peaked at $59,485 but sharply declined to $57,000 within the next 12 hours. 

The pattern repeated on July 12, with the price touching $59,529 before retreating under the $60k mark. This persistent inability to hold above this price level has fueled the investor sentiment of extreme fear, reflected in the recent readings of the Crypto Fear and Greed Index.

Analysis of the fear and greed index

The Crypto Fear and Greed Index, calculated by Alternative. Consider multiple factors, including market volatility, which comprises 25% of the score, and Bitcoin’s dominance and trading volume, each accounting for 10% and 25%, respectively. 

This index, which hit a high of 90 – denoting “extreme greed” – when Bitcoin prices soared past previous records in March, has seen a dramatic reversal aligning with Bitcoin’s price correction from its March peak of over $69,000.

External factors affecting Bitcoin’s price

Several external factors have contributed to Bitcoin’s recent price volatility. Notably, the repayment of creditors by the defunct crypto exchange Mt. Gox, which began on July 5, has reintroduced approximately $8.5 billion worth of Bitcoin into the market. Analysts, including Fejau, have pointed to this significant influx of Bitcoin contributing to the downward pressure on BTC prices.

Furthermore, large-scale BTC sales by the governments of Germany and the United States have exerted additional downward pressure on prices. Data from Arkham Intelligence highlights that the German government has moved 16,254 BTC to exchanges and market makers in just the last 24 days, with these transactions valued at around $935 million at current market prices.

Bitcoin’s current market dynamics reflect a complex interplay of investor sentiment, market forces, and external pressures. As the community watches closely, Bitcoin’s ability to secure a position above the $60,000 mark remains a pivotal indicator of market sentiment moving forward. With several factors influencing its price, the path Bitcoin will take shortly remains uncertain but closely monitored by investors and analysts alike.

The post Bitcoin’s Struggle to Break $60,000 as Fear and Greed Index Plummets first appeared on Coinfea.