Neutral Fear & Greed Index, drop in capital: will Bitcoin finally turn around?

After a series of incessant fluctuations, the crypto fear and greed index is back in the neutral zone. This return to balance after weeks of tension indicates a relative stabilization of the market. However, this lull could quickly dissipate, paving the way for unexpected price movements. In this context, the analysis of current resistances and technical indicators proves crucial to anticipate the next movements of Bitcoin.

Illustration of a mountain climber and bitcoin logo

Bitcoin: between resistance and buying opportunities

The famous bitcoin, after having tested several resistances – including one at $64,000, is facing a delicate situation. THE recent fluctuations between 66.5k and 60k did not cause an investor debacle, but selling pressure remains palpable.

October Fear and Greed IndexOctober Fear and Greed Index
Fear & Greed Index as of October 8, 2024 – Source: Alternative.me

The technical indicators are clear: bitcoin is sailing through troubled waters, with an RSI which displays a neutral reading of 52, and an OBV which betrays stable sales over the last two weeks, despite a slight recovery.

For thrill seekers, the $58k to $60k zone could well become a real Eldorado for buyers. Here are three key points to watch out for:

  • A fall towards 58k-60k represents a great buying opportunity – how to buy Bitcoin;
  • A move above 66k-67k could mark a shift in sentiment towards greed;
  • The CMF, which stands at -0.09, continues to indicate a strong outflow of capital, reinforcing the idea that the market is still fragile.

The crypto market: towards a recovery or a decline?

As for the crypto market in general, the trends observed on the USDT dominance deserves special attention. Traditionally, an increase in the dominance of Tether, a company that just celebrated its 10th anniversary, signals that investors prefer to take refuge in stablecoinsa sign of distrust of the market. Currently, this dominance is up since Marchwhich reflects increased investor caution.

dominance-USDT-octoberdominance-USDT-october
USDT dominance as of October 8, 2024 – Source: TradingView

However, the threshold of 5.79% constitutes resistanceand a return to the decline could indicate a short-term recovery for Bitcoin and other star cryptos. If this resistance is broken, traders will need tobe vigilant and adapt their strategies according to future market trends. As a recent report points out, a correction could well reignite interest in long BTC positions.

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In short, this analysis underlines that the return of the Fear & Greed crypto index to the neutral zone offers a new reading of the market, recalling the importance of monitoring technical and sentimental data to anticipate future fluctuations.

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