By - Bitcoin drops under key support of $64k
- Fear and Greed Index switches from extreme greed to neutral
- Miners and long-term holders sell off amid price concerns
- Potential bounce at 0.618 Fibonacci support
- Bitcoin Breaks Key Support Level
Bitcoin (BTC) has broken below the critical $64,000 support level which will cause concern among traders who are now waiting on its next move as it hovers around $63k.
They will be eyeing the 0.618 Fibonacci level for a potential bounceback. There has been a significant shift in market dynamics recently signaling increased fear and uncertainty.
Market Sentiment Shifts to Fear
Over the past week, there has been a huge swing in the Fear and Greed Index from extreme greed (mid-70s) down to a neutral score of 51 which marks an increase in caution amongst investors – this shows itself through them becoming more fearful than before.
This index acts as a gauge for market sentiment so such quick changes indicate that people are starting to worry about where things might go next.
Bitcoin ( $BTC) Loses $64,000 Support – What Next?
After a period of hanging on to the $64,000 support, Bitcoin has not only dropped through this, but is currently below the $63,000 support. Will the 0.618 fibonacci level come to the rescue…https://t.co/vhsFNbUw8t
— Crypto Daily™ (@cryptodailyuk) June 24, 2024
Price Concerns Mount
Multiple factors have contributed to Bitcoin’s downward spiral; miners selling their holdings, long-term investors taking profits as well and hedge funds capitalizing on carry trade putting pressure downwards on BTC thereby preventing any significant upward movement.
If the price stays below $60k then we might enter into an extended bearish phase but even should it dip to $48k still being within bull market territory would only prolong overall cycles while delaying new highs attainment.
Bullish Wedge Pattern Gives Hope
All is not lost for Bitcoin despite current pessimism being experienced by most traders because, over short time frames like four-hour charts, there appears a descending sloping wedge pattern which usually denotes bullishness hence breakout higher side becomes more likely although if instead, prices break down below this particular setup then further bearish signals can be expected.
Fibonacci Levels Serve as Key Support
The weekly chart shows Bitcoin finding some stability slightly above the 0.618 Fibonacci level which is expected to bounce back considering stochastic RSI being at its oversold region but in case it drops further towards 0.786 fib level stronger bounces should occur since they align with previous supports.
Bitcoin’s resilience in times of uncertainty
Amidst these fluctuations, it is important not to forget what Bitcoin stands for; a safe haven alternative investment class during fiat currency turmoil. This summer might see heightened volatility but there are good chances that we will reach all-time highs again.
