Fear Grips Crypto Investors as Bitcoin Tumbles Below $20K Mark – is it Time to Buy?
In the past 24 hours, the crypto market, including Bitcoin, has experienced a significant downturn, causing Bitcoin to fall below $20,000 for the first time in two months.
This drop has resulted in a sharp decline in investor sentiment, with sentiment levels dropping to negative values not seen since January.
The Crypto Fear & Greed Index has dropped 10 points in a single day, one of the sharpest declines in the past year, and now sits at a score of 34, indicating that investors have become very bearish.
As a result, panic sell-offs have occurred as participants in the space attempt to avoid further losses. This is far from last month’s greedy market, which peaked at 62 on the index. The last time the market saw such a sharp decline was in May 2022, following the Terra (LUNA) network collapse.
Looking at historical data, it is possible to deduce that the bear trend will continue from here. If this happens to repeat the previous trend, Bitcoin could continue declining, possibly even below its current cycle low of $15,500. Interestingly, net flows for the past day have been almost neutral for the top digital assets in the space.
READ MORE: Why did Bitcoin Drop Under $20,000?
According to a Glassnode report, Bitcoin exchange inflows reached $782.9 million versus $796.6 million in outflows leading to negative $13.7 million in net flows. Ethereum recorded the same trend, with net flows coming out to negative $29.6 million after all was said and done.
Historically, it has always been more favorable to enter the market when the majority are scared to do so. This could mean that the current downtrend poses a buying opportunity for investors looking to get in at low prices.
At the time of writing, Bitcoin is still trending below $20,000, changing hands at just above $20,000, down 7.8% in the last day and seeing losses of 10.6% on the weekly chart.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
