Bitcoin's price dipped below $42,000 after the launch of spot Bitcoin ETFs in the U.S., with the wider crypto market also experiencing a pullback. The Crypto Fear & Greed Index turned "neutral" for the first time since November 2023, indicating a shift in market sentiment. Despite the initial surge in price, Bitcoin's momentum was short-lived, leading to a decrease in market dominance and open interest.
The Crypto Fear & Greed Index has reached its highest level since November 2021, indicating investor greed in the cryptocurrency market. With a score of 70.6, traders may become cautious as the index suggests a potential pause in the recent bullish run of Bitcoin, which has gained 28% in less than two weeks. The Relative Strength Index (RSI) also shows overbought conditions, further supporting the possibility of a market breather.
Bitcoin's price has dipped below $30,000, with analysts predicting a short-term support retest. The coming week is expected to be fairly innocuous for macro data releases, with catalysts likely to come elsewhere as BTC price action decides on a key support zone. Bitcoin mining difficulty is set to increase for the fifth time in a row, while the Crypto Fear & Greed Index is rapidly homing in on repeating the climate of November 2021. Meanwhile, more than three-quarters of the mined BTC supply is now in profit, with long-term holders currently outnumbering short-term holders or speculators significantly.
The Crypto Fear and Greed Index has reached its highest score this year, hitting levels not seen since Bitcoin's all-time high in November 2021. The index aims to present the current sentiment towards Bitcoin and the cryptocurrency market, with a score of 66 placing it in the "Greed" territory. Bitcoin has recorded gains of around 27.8% over the past seven days, hitting $28,000 for the first time since June 2022.
