BTC Price Prediction after Falling to $66K; Bitcoin in Tight Trading Range
Bitcoin is rated at extreme fear on the Fear and Greed Index and is trending bearish for now as the crypto market remains low.
Quick overview
- Bitcoin (BTC) is currently trading in a tight range between $65.7K and $71.7K, with a recent drop to $66,497 causing extreme fear among investors.
- The cryptocurrency market sentiment is overwhelmingly negative, with Bitcoin experiencing a 1.51% decline and significant ETF outflows totaling $133 million.
- Despite some minor gains in other cryptocurrencies, Bitcoin is struggling to recover from its downtrend, indicating a challenging situation ahead.
- The Crypto Fear and Greed Index reflects investor anxiety, suggesting that Bitcoin may continue to face difficulties in regaining stability.
Bitcoin (BTC) is still trading within a tight range this week after dropping to $66,497 (BTC/USD) but is also sparking “Extreme Fear” for investor sentiment.
Investors are fearful about where Bitcoin is headed and about how long it will stay bearish. The coin fell 1.51% on Wednesday and may decline further on Thursday as market sentiment is extremely low. The coin has been trading between $65.7K and $71.7K for weeks now.
BTC/USDWhere BTC’s rate will go from here is hard to guess, but it looks like it could drop further. Bitcoin’s movement seemingly ignored the recent jobs data and inflation news that helped the stock market climb higher. This tells us that the coin is trapped in a cycle driven by internal investor sentiment toward the market, which is overwhelmingly negative and fearful.
Bitcoin Expected to Slip Further
The spot ETFs for the Bitcoin market in the United States declined on Wednesday, falling further with $133 million recorded for net outflows. That arm of the Bitcoin market is hemorrhaging investors, and this is part of why the Bitcoin market sentiment is in the range of Extreme Fear. It is possible that the outflows will continue and mark the fifth week in a row that ETFs have declined.
In the past, Bitcoin would have received help from the wider cryptocurrency market to pull it out of a rut, but not this time. Across the board, the crypto market is bearish, with losses recorded for Solana (SOL), Ethereum (ETH), BNB (BNB), and many others. Those losses are not just recorded for Wednesday but over the last week as well, indicating a trend that is severe and certainly no fluke that the market expects to quickly reverse.
A few crypto coins have recorded gains over the past week, but these are not the majority, and Bitcoin is struggling on its own to climb out of the current downtrend. With months of losses and extensive ETF outflows, Bitcoin is in a tough situation. The Crypto Fear and Greed Index shows that investors are worried about where Bitcoin is headed. When that index is in the position of Extreme Fear, the coin is likely to have trouble making back gains anytime soon.
Investors may want to keep their eyes on ETF movements, as the strength of inflows and outflows often indicate where the coin is headed and how stable it is. For now, Bitcoin’s stability is low and the bears have control.
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