By Billie Harvill
The world’s leading crypto asset continues to hit lower zones while fluctuating beneath $42,000 towards the weekend. Though predicting a bottom at this level might be challenging, some vital indicators can help determine further action lines.
The BTC Fear & Greed Index has plunged to its lowest since 2021 July. That indicates extreme fear among enthusiasts. However, history suggests it is that time to buy the dip.
CryptoQuant’s market analyst Benjamin Cowen stated that the Bitcoin fear and greed index does not explore the current lows often. The analysts believe a bounce will mean revisiting higher levels for near-term relief. Moreover, the daily Relative Strength Index remains oversold, and $40,000 – $42,000 is a theoretical support zone.
Galaxy Digital CEO and Wall Street veteran Mike Novogratz told CNBC that Bitcoin might bottom at $40,000 or $38,000. Novogratz trusts institutional participants are seeking an entry-level, and the market might see new capital flow soon.
BTC Metrics to Consider
According to the latest CoinGape reports, some top whale wallets have started accumulating the current dip. Three of the top hundred BTC addresses have added more than 1000 BTC into their holdings. Moreover, BTC’s liquidity supply has increased regardless of the dominant downswings. That means lots of accumulation and crypto HODLers, moving tokens off exchanges. That indicates Bitcoin bulls are optimistic as far as long-term actions by Bitcoin are concerned.
For now, market players remain alert to see whether Bitcoin will overturn the downside trajectory. But as Bitcoin wavers 40% down from its $69K ATH, this might be the time investors buy the dip. However, beware of the risks related to crypto trading. The market is volatile, and nothing is guaranteed. That is why you need to be careful when interacting with this asset class.
While writing this blog, Bitcoin traded at $41,850. The altcoin attempts to recover from its latest beat. Nevertheless, BTC should surge past $45K for a near-term bullish outlook. Such action will catalyze bullishness in the overall crypto space.
Is BTC at its bottom, or do market players need to expect more pain? You can share your opinions below.