BTC Index Falls to ‘Extreme Fear’ Level, Causes Double $60,000 Bar Attempt

The German government selling off its bitcoins and Mt. Gox paying off its debts have done their job. The BTC index hasn’t been this close to the “extreme fear” level since January 2023. The reason is not only the bearish market sentiment, but also an attempt to break through the psychological barrier of $60,000 twice.

Bitcoin Fails to Break $60,000. BTC Index Shows Diminished Investor Sentiment

The BTC Fear and Greed Index has fallen to “extreme fear” levels. The drop in the indicator came as BTC failed to break through $60,000 for the second time in 48 hours. In a post on X, cryptocurrency trader Justin Bennett said this indicates a potential “rising wedge” is forming. This, he said, suggests more declines in the coming days. While BTC rose to $59,485 on July 10, before falling back to $57,000 over the next 12 hours, it rose again to $59,529 on July 11, but did not sustain there.

The Crypto Fear and Greed Index takes into account market volatility (25%), trading volume (25%), Bitcoin dominance (10%), and trends (10%). Previously, the index also included market research with a 15% weighting, but this indicator has been discontinued. The Bitcoin Index Indicator has been on a steady downtrend since reaching a score of 90 “extreme greed” on March 5, when Bitcoin surpassed its previous all-time high of $69,000 set in November 2021.

Why is BTC falling and when will the bull market begin?

This question is certainly being asked by many lovers of digital assets. The declines in the BTC price began last week, when the German government decided to sell its BTC resources. Although there were ideas for Justin Sun to buy BTC, it ultimately did not happen. At practically the same time, the Japanese bankrupt cryptocurrency exchange Mt.Gox announced the repayment of debts. Although declines are very often announced on social media as market bleeding, traders know well that the decline in bitcoin is an opportunity to buy.