Bitcoin drops to $ 34,000 as fear and greed index registers ‘extreme fear’

Bitcoin is on its way for the sixth consecutive week of losses, its longest losing streak to date. Confirmation of this pattern is likely to represent additional losses for the world’s most popular cryptocurrency.

As a result, a huge panic returned to the bitcoin market after its recent decline, which, according to data, may have been caused by whales.

This week, Bitcoin experienced one of its sharp declines in 2022, as investors expected cash to dry up due to rising interest rates and slowing economic development.

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The broader Bitcoin market continues to remain in the red zone. (Shutterstock)

BTC crashed to $ 34,637

Sunday’s Coingecko data shows that Bitcoin fell 7.5% over the previous week and is trading close to its 2022 low of $ 34,637.

The Bitcoin Fear and Greed Index (BFGI) has once again reached a level of “extreme fear” as the price of cryptocurrencies continues to fall.

The fear and greed index is at its lowest level since late January, with a reading of 18 at the time of writing, compared to 23 yesterday.

In fact, the metric has not been in such dire shape since late January, when the price of Bitcoin dropped to $ 33,000.

Bitcoin’s highest values ​​in March quickly eroded. The cryptocurrency is 34% lower than its 2022 peak of $ 47,937.

The Fear and Greed Index has dropped to its lowest level since late January, with a rating of 18 as of this writing, down from 23 the day before. (Image credit: alternative.me)

Confirmation of the six-week loss is likely to send traders a very pessimistic signal and reduce their rebound position. This could result in further BTC losses.

BTC fell by more than $ 10,000 in one month and closed the month below $ 40,000.

May didn’t start well either. BTC jumped to $ 40,000 after the last FOMC meeting, during which the Federal Reserve announced it would raise interest rates by 50 basis points instead of 75 basis points. However, this increase was short-lived.

Analysts now predict a bottom price of Bitcoin of as much as $ 28,000, which is the average realized price. Breaking this level will result in losses for most long-term BTC owners, potentially provoking resale.

BTC total market cap at $658 billion on the weekend chart | Source: TradingView.com

Bitcoin Fear and Greed Index: Discouraging

As evidenced by the Fear and Greens Index, this fall in prices has resulted in a change in general market sentiment. Statistics show final findings ranging from 0 (extreme fear) to 100 (extreme greed).

The analysis of posts on social networks in the community, surveys, volatility, trading volume, etc., determines the mood of the property.

Bitcoin is not alone in losses. In the previous month, the total capitalization of the cryptocurrency market was reduced by approximately $ 400 billion.

Avalanche (AVAX) and Terra (LUNA) are among the largest cryptocurrencies with the worst results over the past 30 days.

As of mid-April, Bitcoin has been in a zone of fear, but recent price declines have pushed the cryptocurrency into acute panic.

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Featured image CCN.com, chart from TradingView.com

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