Market Stays Fearful, But On-Chain Data Shows This Could be the Bitcoin Bottom
- The Bitcoin Fear & Greed Index is at “Fear,” a classic contrarian signal that often marks market bottoms
- Key on-chain data, like the STH Realized Price, is confirming a potential reversal at current levels
- The main risk is a drop below $108k, which would confirm a bearish “double-top” pattern instead
The Bitcoin Fear & Greed Index has just flashed “Fear,” a classic contrarian buy signal, as the price bounces hard off the $107,500 support level to reclaim $110k. For traders, the question is whether this is the real bottom and a prime “buy the dip” opportunity, or is it a bull trap before another leg down.
Why “Fear” Can Be a Buy Signal
The core of the bull case is that the market is showing signs of peak fear, which is often when the smart money starts to buy.
What is the Fear & Greed Index telling us?
The index has dropped to a reading of 46 (“Fear”). While not “Extreme Fear,” this level of pessimism has historically appeared near market bottoms, especially when combined with other key on-chain metrics.
So what are these other key on-chain metrics?
The Bitcoin price is currently testing the Short-Term Holder’s (STH) R…
The post Market Stays Fearful, But On-Chain Data Shows This Could be the Bitcoin Bottom appeared first on Coin Edition.
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Market Stays Fearful, But On-Chain Data Shows This Could be the Bitcoin Bottom
- The Bitcoin Fear & Greed Index is at “Fear,” a classic contrarian signal that often marks market bottoms
- Key on-chain data, like the STH Realized Price, is confirming a potential reversal at current levels
- The main risk is a drop below $108k, which would confirm a bearish “double-top” pattern instead
The Bitcoin Fear & Greed Index has just flashed “Fear,” a classic contrarian buy signal, as the price bounces hard off the $107,500 support level to reclaim $110k. For traders, the question is whether this is the real bottom and a prime “buy the dip” opportunity, or is it a bull trap before another leg down.
Why “Fear” Can Be a Buy Signal
The core of the bull case is that the market is showing signs of peak fear, which is often when the smart money starts to buy.
What is the Fear & Greed Index telling us?
The index has dropped to a reading of 46 (“Fear”). While not “Extreme Fear,” this level of pessimism has historically appeared near market bottoms, especially when combined with other key on-chain metrics.
So what are these other key on-chain metrics?
The Bitcoin price is currently testing the Short-Term Holder’s (STH) R…
The post Market Stays Fearful, But On-Chain Data Shows This Could be the Bitcoin Bottom appeared first on Coin Edition.
Read More
Bitcoin Slips Below $110K as Analysts Weigh Risk of Deeper Pullback