Crypto Price Today: Bitcoin’s Fear and Greed Index Hits Unprecedented Low; What’s Next?
The likelihood of further crypto selloffs in the near future has increased as Bitcoin’s (BTC) price closed below the critical support level of around $57k on Thursday. The flagship coin has experienced a drop of over 4 percent this week, trading at about $56,786 on Friday, September 6, during the early Asian session.
As the altcoin industry continues to exhibit mid-term bearish sentiment, investors have refrained from making purchases until the correction subsides. Bitcoin’s fear and greed index dropped to a historic low of 22 percent on Friday, indicating extreme fear of a market capitulation.
Whale traders have become cautious about the short-term volatility of Bitcoin, leading to a significant decline in demand within the past week. This bearish outlook has signaled further weakness in September. Notably, the US spot Bitcoin ETFs have seen seven consecutive days of significant cash outflows.
On Thursday, the US spot Bitcoin ETFs reported a net cash outflow of approximately $211 million, primarily led by Fidelity’s FBTC. It’s worth mentioning that BlackRock’s IBIT has not experienced any recent cash outflows.
Meanwhile, on-chain data reveals that several whales have been depositing their Bitcoins into exchanges in the past few days.
“A whale deposited 380 $BTC($21.34M) to #Binance again 4 hours ago. And the whale has deposited a total of 4,544 $BTC($265M) to #Binance in the past 7 days,” tweeted Lookonchain on September 6, 2024.
Nonetheless, the overall supply of Bitcoin on centralized exchanges has continued to decrease over the past five months, indicating that the ongoing market correction has not rattled long-term holders.
BTC Price Expectations
“This is called an inverted expanding triangle or a megaphone. A test of the lower boundary would be around 46,000 or so. A massive thrust into new ATHs is required to get this bull market back on track $BTC. Selling is stronger than buying in this pattern,” tweeted veteran trader Peter Brandt on September 5, 2024.
According to Brandt, Bitcoin’s price has been forming a macro megaphone pattern, which typically precedes a major bullish trend. However, the prevailing bearish sentiments have outweighed the number of buyers.
Arthur Hayes, the co-founder of Bitmex, echoes a similar narrative, stating that Bitcoin’s price will likely dip below $50k in the near term before rebounding to reach new all-time highs.
Despite the anticipated interest rate cut in the coming weeks, Brandt believes that the BTC price is headed towards retesting the support level of approximately $46k.