Crypto Market Remains Greedy Despite Bitcoin Price Crash To $94,000, Is A Recovery Coming?
You might say that despite the sharp drop in Bitcoin price to $94,000, the cryptocurrency market remains confident. Although price action suggests otherwise, this confidence is highlighted by various predictions from cryptocurrency analysts on social media and TradingView, which covers various cryptocurrencies.
Amid price drops and market optimism, the Cryptocurrency Market Fear and Greed Index continues to point toward greed, with the index favoring the idea of a brief decline before a broader recovery.
Bitcoin price plunge hampers bullish momentum
The crypto industry has been largely bullish throughout 2024, with many cryptocurrencies hitting multi-year highs. The momentum was led by Bitcoin, which surpassed a 2021 all-time high of $69,000 in mid-2024, Finally broke above On December 5, it broke through the psychological barrier of $100,000 for the first time.
Related reading
However, since crossing the six-digit price threshold, Bitcoin’s price action has mostly been Full of corrections. Despite peaking at $108,135 on December 17, the price has been declining over the past 12 days or so. especially, Bitcoin has corrected to lows The price in the last 7 days was $92,600, which basically resulted in A string of losses for other cryptocurrencies and curb the bullish momentum.
Given Bitcoin’s strong rally in recent months, its decline surprised many cryptocurrency traders. Analysts attributed the correction to profit-taking by some long-term holders and a temporary slowdown in market activity.
Cryptocurrency market sentiment remains greedy
Despite recent price drops, holding trend indicates The cryptocurrency market is still expected to maintain its gains in 2025. This sentiment is reflected in the Fear and Greed Index, which continues to hover in greed territory, indicating investor confidence. The index is derived from a combination of key indicators including market volatility, trading volume, social media sentiment, Bitcoin dominance, Google search trends and surveys. Each component is carefully weighed to gauge the psychological state of the market.
Related reading
At the time of writing, according to the Cryptocurrency Fear and Greed Index to replace me, The reading is 72, which is at the greedy threshold. This conveys investor confidence in various market indicators and suggests that traders view dips as a buying opportunity rather than a cause for panic.
This greedy sentiment is conveyed By some buying trends Across famous cryptocurrencies. For example, on-chain data from crypto analytics firm Santiment shows that Dogecoin whales purchased more than 90 million DOGE tokens in the past 48 hours. With this in mind, analysts are optimistic about a broader market recovery in the coming weeks. Technical indicators point to a rebound if Bitcoin can continue to hold above support around $92,000.
At the time of writing, Bitcoin is trading at $94,400, down 12.8% since reaching $108,135 on December 17. according to Cryptocurrency analyst Ali Martinez said that this kind of correction (between 20% and 30%) is the best thing that always happens to Bitcoin in every bull market cycle.
Featured image created using Dall.E, chart from Tradingview.com
