Recently, the cryptocurrency market has been quite nerve-wracking — before the FOMC minutes were released this week, the market briefly fell into 'panic mode.' Many people are asking: Is this a continued decline or has it already bottomed out, and are opportunities arising?
Market sentiment: from 'fear' to 'neutral'
According to the latest data, on Wednesday, the cryptocurrency Fear and Greed Index (FGI) fell to 45, which is in the 'fear' zone. But the good news is that by the time of writing, it has rebounded to neutral at 50, suggesting that market sentiment is starting to stabilize slightly.
However, don’t forget that all this is happening on the eve of the July FOMC meeting minutes release, which already has the market tense.
Reasons behind the pullback
In the third quarter, Bitcoin once surged to 124,000 dollars, but unfortunately, it was pressed down by strong profit-taking and macro pressures, with a decline of less than 10%. Meanwhile, the demand for ETFs and crypto bonds has also noticeably decreased 📉.
Additionally, a large amount of liquidations on both sides has intensified market volatility — over the past three weeks, the liquidation amount has exceeded 1 billion dollars. This is definitely a 'three seconds of heartbreak' 💔 for traders.
Has it bottomed out? Here's how analysts see it.
Wall Street analyst Tom Lee stated that there is no need to be overly nervous; he believes Bitcoin (BTC) and Ethereum (ETH) may have already 'hit the bottom' ✅.
ETH has rebounded from 4,000 dollars, with an increase of about 6%.
BTC reached 112,300 dollars on Wednesday.
The options market also quietly supports this view: the 1-week and 1-month 25 Delta Skew are above 10%, indicating that there is greater interest in call options, making the short-term and medium-term outlook for Bitcoin appear positive.
Short-term opportunity: Can it rebound to 124,000 or even 130,000?
Options traders have started to bet that BTC has a chance to return to the 124,000–130,000 dollar range; if true, it could very likely boost overall market sentiment 🔥.
Of course, Powell's hawkish stance remains an uncertainty; if his attitude is tough, the market may experience small fluctuations again, so everyone should pay close attention to his speeches.
🎯 In summary:
Although Bitcoin recently fell from 124,000 to 112,000, the short-term and medium-term signals in the market indicate that a bottom is likely to have appeared. Now it’s the rhythm of 'staying focused on opportunities and patiently waiting.'
The cryptocurrency market changes quickly, with opportunities and risks coexisting. Learning to enter and exit strategically, protecting the principal, is crucial for steady progress and wealth and growth accumulation. ✍️ Remember to DYOR, manage risks well, and I wish everyone a smooth sailing in the crypto world! 🌊
Many understand the trends, but few follow the rhythm correctly.
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