Greed

Ethereum

Bitcoin

when

Drops

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Bitcoin’s oversold condition does not guarantee an immediate price bounce, despite the defense of the $50k support zone.</li> 
 <li>The crypto Fear and Greed index currently shows fear in the market, potentially presenting a buying opportunity.</li> 
</ul>  
<p>Bitcoin’s current oversold and imbalanced condition does not necessarily mean an immediate price bounce is in the cards.</p> 
<p>While the $50k support zone is being defended, and some stabilization could persuade investors to bid, the risky conditions are still in play.</p> 
<h2 id="crypto-market-in-disarray">Crypto Market in Disarray</h2> 
<p>At a moment when the price of <a href="https://coineagle.com/price/bitcoin/">Bitcoin</a> [BTC] was just above the $60k level, the crypto market found itself in a state of disarray.</p> 
<p>The $49k low has been set, and further losses could transpire during the New York trading session, causing panic among participants.</p> 
<p>The crypto Fear and Greed index was at 31, indicating fear in the market. This could potentially present a good buying opportunity.</p> 
<h2 id="altcoin-market-capitalization-drops">Altcoin Market Capitalization Drops</h2> 
<p>Since the 29th of July, the altcoin market capitalization has dropped by $163 billion, or 28%.</p> 
<p>This measures the top 125 altcoins excluding <a href="https://coineagle.com/price/ethereum/">Ethereum</a> [ETH] and, of course, Bitcoin.</p> 
<p>These two giants haven’t fared well either, losing 37.85% and 30% respectively at their lowest.</p> 
<p>The index currently shows “fear” with a reading of 26, a condition that has not been the norm for crypto in 2024.</p> 
<p>The most recent instance was the 13th of July when the index fell to 25. Bitcoin’s price was at $57.8k then and bounced to $68.8k just two weeks later.</p> 
<p>If history repeats itself, Bitcoin might hold on to the $50k support and climb higher.</p> 
<p>The daily RSI was at 23, reflecting oversold conditions. The cumulative liquidation levels delta on the chart above was increasingly favoring the short positions.</p> 
<p>This imbalance can be wiped out by a sharp price bounce. However, with sentiment as it is and fear ruling the market, strong buying pressure might not arrive for another 24-48 hours.</p> 
<p>If it does, the $53.9k and $55.7k levels would be the short-term resistances to watch.</p>

Is the Crypto Market in the Buy Zone or Still Too Volatile? Unraveling Fear and Greed Index Insights

Table of Contents

CoinEagle.com

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