The price rates of $60,000, $56,800, and $54,000 for Bitcoin pushed the market into a panic and nearly caused anarchy between dealers.
When BTC went below the aforementioned price levels, chants of “buy the dip,” “Black-Friday discount,” and other such hopeful feelings anticipating a swift reversal erupted, but the greater market’s tone seems to be gloomy.
Fear has taken over
Bitcoin was trading at $54,366, just 20% below its all-time high at the time of filing, but the market has reentered “severe anxiety” for the first time since November 27, 2021, when it was at $43K.
The fear and greed index was hit hard by BTC’s $6,000 drop in a single day, with the score more than halving in the same period. However, with Bitcoin stabilizing slightly around $54K at the time of writing, the signal had reverted from ‘severe fear’ to the ‘fear’ zone. Notably, the Fear and Greed index measured ‘high greed’ the last time Bitcoin’s spot price was around the same price levels.
Furthermore, on a daily chart, Bitcoin’s price and RSI have been in a downtrend since November 10, making lower lows. However, despite the price drop, funding rates remained positive, indicating that the market expected a quick recovery, which has yet to occur.
So, what is Bitcoin (BTC) up to these days?
For the time being, the leverage ratio for Bitcoin is still too large to establish that $53K was the true bottom, allowing BTC to reach a new ATH. More corrections, according to analysts, are expected to take BTC down to price ranges of 53K or below, confirming the true double bottom before the price rises.
At the time of writing, the price of BTC appeared to be forming a falling wedge pattern, which has been witnessed before. Bitcoin made a double bottom before commencing the rise when the same falling wedge formation was seen at the end of September.
Notably, Bitcoin addresses containing many Bitcoins were currently displaying a fractal that looked very similar to the one that appeared last year just before the price broke the ATH.
BTC could see increases in the following month if the above fractal plays out the same way it did in 2020 when Bitcoin’s price climbed by about 100%. Despite this, BTC’s supply shock ratio offered a bullish picture for the leading cryptocurrency. Bitcoin’s price normally follows the Exchange Supply Shock Ratio, but there are divergences this time; however, as accumulation climbs and supply on exchanges decreases, the price could follow soon.
After making three lower lows and two lower highs, Bitcoin’s price has been in a falling wedge. BTC, on the other hand, would need to pull ahead of the monthly close in the near term. Even if December has traditionally been a bullish month for the top currency, with values unsteady at the moment, nothing can be said with surety.