The crypto market is going through some of the hardest times that it has ever seen. Only a week ago, the whole market was doing great for the first time in months. It was believed that the bearish market and corrections are finally over, and there are only available rich price movements for every crypto out there from now on. But all of it came crashing down only two weeks after the assumption was made.
Bitcoin was doing well above the $25K as investors started pouring their money once again into the market; the resistance level was set at $21K. So what has happened till then is that Bitcoin has lost about 9% of its total value in the past 24 hours. It has fallen down to its resistance level, the very element it was supposed to back.
A new resistance level has been obtained that sits at $18K, and it is being hoped that Bitcoin will not fall anymore low than this. But at this moment, these are merely assumptions that are not backed by hard facts or analysis. The bears have re-entered the market, and they are going to impose further corrections now; it seems bleak for Bitcoin to rise to the occasion now.
Fear and Greed Index Shows Negative Sentiment
So, what actually transpired was the institutional investors and whales began to dump their positions as soon as they caught the wind of Bitcoin revisiting the $21K resistance level. It was a frenzy, and therefore every crypto and altcoin was bleeding red.
The fear and greed index of the crypto market has confirmed that the overall sentiment of the market is negative at the moment, and it is expected to remain so until the bulls revisit the market and pump some exuberant amount of money into the crypto market.
People don’t have the money or finances to be able to afford to trade within the crypto market, and the inflation that is rising above the ground levels is giving everyone a pretty hard time on the wheel; it is assumed now that the whole crypto market is going to crash soon if some kind of reversal doesn’t take place sooner than that.