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It can be argued that the cryptocurrency market remains confident despite the significant decline in Bitcoin’s price to $94,000. Although the price action says otherwise, this certainty is supported by various predictions from cryptocurrency analysts on social media and on the TradingView platform, which covers various cryptocurrencies.
Amid the price decline and market optimism, the cryptocurrency market’s fear and greed index continues to point to greed that leans toward the idea of a transient decline before a broader recovery.
Bitcoin price collapse stops bullish momentum
The cryptocurrency industry has shown largely bullish momentum throughout 2024, with many cryptocurrencies reaching up-to-date multi-year highs. This momentum was driven by Bitcoin, which broke through its 2021 all-time high of $69,000 in mid-2024. finally break through above psychological level of $100,000 for the first time on December 5.
However, Bitcoin’s price action since breaking through the six-figure price threshold has been mostly intense full of corrections. Although the high reached $108,135 on December 17, the last 12 days have been marked by falling prices. Especially, Bitcoin corrected to a low to $92,600 in the last seven days, which essentially led to: a cascade of declines among other cryptocurrencies and stopping the upward dynamics.
Bitcoin’s decline has surprised many cryptocurrency traders given its robust growth in recent months. Analysts attribute this correction to profit-taking by a few long-term bondholders and a transient slowdown in market activity.
Crypto market sentiment remains greedy
Despite recent price drops, HODLing trends suggest that the cryptocurrency market remains on track to maintain growth through 2025. This sentiment is reflected in the Fear and Greed Index, which continues to hover in the greed zone, signaling confidence among investors. The index is created based on a combination of key indicators, including market volatility, trading volume, social media sentiment, Bitcoin dominance, Google search trends and surveys. Each element is carefully weighed to assess the psychological state of the market.
At the time of writing, the Crypto Fear and Greed Index agrees to alternativea.me, is 72, which is the greed threshold. This demonstrates investor confidence in various market indicators and suggests that investors view the decline as a buying opportunity rather than a reason to panic.
This feeling of greed is transmitted through several shopping trends in the case of known cryptocurrencies. For example, on-chain data from cryptocurrency analytics firm Santiment shows that Dogecoin whales have purchased over 90 million DOGE tokens in the last 48 hours. With this in mind, analysts are positive about a broader market recovery in the coming weeks. Technical indicators point to a Bitcoin-led rebound if it can hold above support levels around $92,000.
![Cryptocurrency Market Bitcoin Price 2](https://www.newsbtc.com/wp-content/uploads/2024/12/Crypto-market-Bitcoin-price-2.png?w=460&resize=460%2C217)
At the time of writing, Bitcoin is trading at $94,400, down 12.8% since hitting $108,135 on December 17. According to crypto analyst Ali Martinez, such corrections (20% to 30%) are the best thing that always happens to Bitcoin in every bull cycle.
Featured image created with Dall.E, chart from Tradingview.com