Despite the pullback to $100K, market sentiment is not overly fearful.
Analysis suggests a drop to $92.5K could occur if the demand zone of the 'fair value gap' fails.
The price of Bitcoin [BTC] has dropped from nearly $112K to $101.3K at the time of writing, shifting market sentiment to a state of confusion.
In reality, although on-chain indicators reflect cautious optimism, Bitcoin and the broader cryptocurrency market both lack strong upward momentum.
Source: Alternative.me
The previous greed and fear sentiment index indicated greed last month, but it has now shifted to a neutral and fearful state.
Although concerning, the current sentiment is not as bad as it was in April. At this point, the fear and greed index shows that investors do not expect a deeper correction. Could this predict the next downward trend to $92K?
What signals are coming from the fear and greed index trend?
Source: CoinStats
The optimistic trend has been maintained for nearly two months but has recently dropped to neutral levels.
The current situation is gradually resembling March. If the price remains below the $98K-$100K level, sentiment could shift to a stronger bearish side.
Source: BTC/USDT on TradingView
Technical analysis of the weekly chart indicates that the price range of $97.9K-$100.7K (white box) is a fair value gap that could provide support in the coming days. This area has been protected in the recent weekend drop.
If the traditional market continues to create FUD, Bitcoin could fall below $98K. However, the trend still leans towards the bullish side after the market structure broke in May.
Fibonacci levels indicate support at $93.2K, $88.8K, and $82.5K if $98K falls. The OBV indicator also does not show excessive selling pressure on the weekly chart.
Source: Coinglass
The 6-month liquidation heatmap indicates that $92.6K is an attractive price target. In the context of ongoing macroeconomic volatility, a pullback to $94K is entirely possible. This liquidity cluster could also pull prices down further.
Investors and traders need to remain highly vigilant. Without strong buying pressure, the likelihood of a bullish reversal from the $100K area will be difficult. The market structure on the daily chart has turned bearish. When sentiment reaches a sufficient level of fear, Bitcoin could begin to recover.
Source: https://tintucbitcoin.com/crypto-fear-greed-thap-truoc-hoi-phuc-bitcoin/
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