“Fear” made bitcoin plunge below $42K

• It didn’t take much — about $3,500 off the Bitcoin price — for crypto traders to rethink their minds.

• According to Cointelegraph Markets Pro and TradingView data, BTC/USD hit a low of $41,741 on Bitstamp on Saturday before rebounding above $42,000.

• According to the Crypto Fear & Greed Index, “fear” returned as the dominant factor among traders. The Index was 44/100 on Saturday, down from 54/100 on Wednesday.

“Fear” has returned

According to the Crypto Fear & Greed Index, three days of “neutral” territory was sufficient before “fear” returned as the dominant factor among traders.

The late drop this week was more than convincing enough for crypto market sentiment to take another blow.

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The Index was 44/100 on Saturday, down from 54/100 on Wednesday.

The trading suite discusses January’s weeks-long plunge into the bottom “severe terror” zone. Based on past patterns, Decentrader concluded that a mood reset had already occurred.

“Such long moments of acute panic indicate that regular market participants may be caught off guard. That was seen in the $BTC’s rapid rise to the upside over the last two weeks “In a market update issued on Friday, analysts said.

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The chances are not in investor’s favor

According to Cointelegraph Markets Pro and TradingView data, BTC/USD hit a low of $41,741 on Bitstamp on Saturday before rebounding above $42,000.

Following the release of U.S. CPI data, the pair’s gain was stopped, and demands for a return to $40,000 or even below surfaced to test the steely bulls’ commitment.

contributor Michael van de Poppe, the results were still inconclusive, although care was clearly required on short-term trades going forward.

“Bitcoin is still looking at the same resistance,” he explained, with a graphic depicting probable support and resistance levels.

“May the crypto gods be with you because the chances are not in your favor,” renowned Twitter analyst Credible Crypto warned.

Others, meanwhile, have called time on the potential magnitude of Bitcoin’s longer-term decline.

Even at present levels, Bitcoin’s weekly close was scheduled to be nearly comparable to the previous one, keeping the majority of the past gains that had brought it out of the $30,000 range.