Bitcoin Price Drops 13.5% as Crypto Fear & Greed Index Declines to 65
The Crypto Fear & Greed Index, an indicator of market sentiment in cryptocurrency, has dropped to levels last seen in October. As of December 30, the index is at 65, down from highs in November and early December, with a peak score of 94 on November 22. This decline coincides with Bitcoin's recent price decrease.
Bitcoin has decreased 13.5% from its all-time high of $108,268 on December 17, now trading around $93,460. Its market capitalization has also fallen by 16%, currently at $1.84 trillion.
Market dynamics shifted notably since November when Donald Trump won the U.S. presidential election. While this event initially fostered optimism, the recent downturn reflects market indecision.
Trader Peter Brandt has identified a potential "Hump Slump Bump Dump Pump" pattern for Bitcoin, involving an initial rise, correction, partial recovery, sharper decline, and rebound. Bitcoin's consolidation phase between a descending trendline and key support levels aligns with this trajectory.
CoinMarketCap data shows the total market capitalization of all cryptocurrencies dropped from $3.8 trillion on December 17 to $3.27 trillion as of December 29, a decline exceeding 13%.
What Do Technical Indicators Suggest?
Analysts indicate that a breakout above Bitcoin’s descending trendline could revive bullish sentiment, while a breakdown below key support levels may intensify bearish pressure. On December 29, analyst Rekt Capital noted that previous support levels have transformed into new resistance zones, signaling potential bearish momentum. Bitcoin would only move decisively lower if it breaches the $94,250 level on the daily chart, which could lead to testing the low $90,000 range.
What’s Next?
Some experts maintain optimism about Bitcoin's future, with a December 28 report from Blockware Solutions outlining two scenarios for 2025: a "bear case" predicting a rise to $150,000 and a "bull case" forecasting a surge to $400,000, contingent on the adoption of a Bitcoin reserve policy under Trump.
As the year concludes, traders and investors remain cautious, balancing optimism regarding pro-crypto political leadership with expectations of potential turbulence in early 2025.