The fear index in BTC is now at 30, indicating that traders are feeling anxious.
If the price of Bitcoin remains above $80,000, the market may witness a recovery soon.
If fear increases further, the price of BTC will drop, leading to more selling.
So far, a significant drop can be observed - however, this time it may change significantly as Bitcoin market sentiment shifts within a day - another meteoric drop below $60,000 is within people's expectations and collective sentiment as indicated by the Bitcoin fear and greed index, which has dropped to 30, referred to as 'fear'.
This indicates significant differentiation, as the fear and greed index shows levels that were previously either neutral or in a greedy phase, thanks to Bitcoin's strong rally. These drops have been observed to coincide with corrections in Bitcoin's price, raising many questions about the direction of this asset in the short term.
In contrast, the blue line depicted in the chart, reflecting Bitcoin's price, has remained strong amidst market fears, still in a better position above the $60,000 level after reaching its historical highs. As the index enters a sharp downward phase, market watchers are closely monitoring whether history will repeat itself - that is, whether long periods of fear will precede sharper sell-offs - or whether the market will prove resilient and rally before it repeats.
Historical trends suggest that fear levels often precede price movement levels.
As extreme fear levels drop below 20, greed levels exceeding 80 often indicate local bottoms, often preceding corrections to greed levels. This shows that the fear and greed index has played an important role in predicting Bitcoin market shifts over time. It is evident from the chart that this price is closely linked to sentiment, especially during periods of rapid corrections, just as seen in the data from previous cycles between 2018 and 2025.
In early 2020, the index dropped below 10, coinciding with Bitcoin collapsing below $4,000; and in 2022, the same drop occurred during an event that saw the market stabilize amidst the collapse of major cryptocurrency companies. The latest drop in sentiment to 30 follows Bitcoin reaching its all-time highs, indicating a likelihood of consolidation or correction in the short term.
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