Bitcoin’s Current Market Mood: A Breakout or a Pullback?
Since the New Year, Bitcoin’s greed index has peaked just once, with sentiment mostly neutral. History shows sustained greed fuels rallies – just like BTC’s run to $106K last December.
Bitcoin’s ‘high-risk, high-reward’ edge is fading as traders favor quick flips over long-term bets. The market hasn’t slipped into “extreme” fear, which often signals a true market bottom.
Bitcoin hit $100K over a week ago, yet it refuses to drop below $92K. Is this the buildup to a breakout, or is another pullback about to shake the market?
Decoding the current market mood
Bitcoin’s greed index has peaked just once, keeping sentiment in limbo. Traders are favoring quick flips over long-term conviction, dulling Bitcoin’s ‘high-risk, high-reward’ edge.
If history tells us anything, consolidation is often the calm before a breakout – big money fends off a pullback, while weak HODLing delays a supply shock.
Bitcoin’s ‘high-risk, high-reward’ edge is fading as traders favor quick flips over long-term bets. The market hasn’t slipped into “extreme” fear, which often signals a true market bottom.
This holding pattern may not last. Nearly $500 million have flowed out of BTC ETFs in three days. Whales are cashing out, selling pressure is rising, and derivatives are flashing warning signs.
If this trend holds, a breakout may be off the table. Instead, fear could take over, dragging BTC down to $88K before its next big move.
Bitcoin at a crossroads
Unlike past cycles, macro forces are steering this one. The Crypto Volatility Index (CVI) is nearing pre-election lows – a bullish signal.
Yet, with RSI still above the bottom and MACD flashing bearish, the charts aren’t screaming “buy” Bitcoin just yet.
This supports AMBCrypto’s earlier take: a pullback could be the next move before any real breakout.
Adding to the uncertainty, leverage in derivatives is hitting new highs, making a full-blown deleveraging phase far from certain. Unlike past cycles, this one doesn’t promise a parabolic rally.
Instead, BTC could defy expectations as sentiment remains stuck in limbo. It’s still missing the “greed” trigger needed for liftoff.