BITCOIN INVESTORS ALERT: CAN PRICES RALLY WHILE FEAR DOMINATES THE MARKET?
On November 18, Bitcoin remained steady as traders bought the dip ahead of FOMC minutes and Nvidia earnings. Bitcoin edged up to $93,700 after hitting a weekly low of $88,790, remaining roughly 26% below its year-high.
Crypto Fear and Greed Index Signals Extreme Market Fear
A key factor influencing Bitcoin’s price is the ongoing market fear. According to CoinMarketCap data, the Crypto Fear and Greed Index has plunged to 15, entering the extreme fear zone—the lowest level since April this year. This index is calculated by analyzing multiple data points, including the price momentum of Bitcoin and other altcoins, market volatility, derivatives activity, and Bitcoin’s relative value in the market.
Similarly, the CNN Money Fear and Greed Index has dropped to 12, its lowest since April. All sub-indices—covering market volatility, put and call options, safe-haven demand, junk-bond demand, and stock price strength—have also fallen into the extreme fear category.
Historically, Bitcoin often begins its bull runs during periods of extreme market fear. For instance, in July last year, when the Fear and Greed Index hit 26, Bitcoin was at $54,000. Within a few months, it surged to a new all-time high.
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Likewise, the Crypto Fear and Greed Index previously fell to 19, and Bitcoin rose to $79,000, later reaching nearly $109,000. Conversely, most bear markets for Bitcoin tend to start during periods of extreme greed, highlighting the index’s role as a contrarian indicator.
Bitcoin Price Technical Analysis: Signs of a Potential Rebound
Bitcoin’s technical indicators point to possible upside in the near term. The Relative Strength Index (RSI) has moved into oversold territory at 30, suggesting that selling pressure may be easing and the market could be due for a bounce. Meanwhile, the Percentage Price Oscillator (PPO) has fallen to its lowest level this year, further highlighting that Bitcoin is trading near a potential support zone.
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From a price pattern perspective, Bitcoin has reached its double-bottom target of $92,000, a level often seen as strong support in technical analysis. In addition, the formation of a hammer candlestick on the charts indicates a potential reversal, as this pattern typically appears when buyers start stepping in after a sell-off.
Given these technical signals, the most likely scenario is a rebound toward the psychological level of $100,000, where market sentiment could shift more bullish. However, traders should be cautious, as a drop below this week’s low of $88,790 would invalidate the bullish outlook and could signal further downside.
In summary, Bitcoin is showing early signs of recovery, but confirmation from price action above $92,000 and holding key support levels will be critical for the next upward move.
FAQs
Q: Why did Bitcoin stabilize on November 18?
A: Bitcoin remained steady as traders bought the dip, anticipating key events like the FOMC minutes and Nvidia earnings, which helped limit further losses.
Q: What is Bitcoin’s current price range?
A: The price rose to $93,700 from a weekly low of $88,790, still roughly 26% below its year-high, indicating a cautious market.
Q: What does the Crypto Fear and Greed Index indicate?
A: The index fell to 15, entering extreme fear territory—the lowest since April—often a signal that a rebound could be near.
Q: How does market fear affect Bitcoin historically?
A: Historically, extreme fear has triggered rallies; for example, last year, when the index hit 26, Bitcoin rose from $54,000 to new highs within months.
Q: What do technical indicators suggest for Bitcoin?
A: Oversold RSI, the double-bottom at $92,000, and a hammer candlestick pattern suggest a potential rebound toward $100,000, while a drop below $88,790 would invalidate this outlook.
