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BTC has been in a consolidation phase in the past few days.
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Bitcoin’s fear and greed index has moved to the fear level.
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The broad fear index by CNN Money is still in the greed zone.
Bitcoin price remained under intense pressure as concerns about the crypto industry continued. It was trading at $16,516 on Tuesday, where it has been in the past few days. This price is a few points above this month’s low of $15,733. The BTC/GBP and BTC/EUR have also been consolidation phase as well.
FTX and Alameda contagion continues
Bitcoin and other cryptocurrencies have been on edge following the collapse of FTX. At its peak, the company was the second biggest cryptocurrency exchange in the world after Binance. It was also seen as a savior of the blockchain industry as the founder made significant investments in a struggling company.
The contagion in the industry has continued. On Monday, BlockFi, a struggling crypto lender, filed for bankruptcy after the collapse of FTX. FTX had reached a definitive agreement to acquire the company, as we wrote in this report.
Other companies are struggling as well. For example, over 150 firms have applied for financing from a fund created by Binance and other large players. At the same time, Digital Currency Group (DCG) has hired restructuring experts as its portfolio companies come under pressure.
Crypto fear and greed index improves
Bitcoin price has been in a tight range as the cryptocurrency fear and greed index improves. According to AlternativeMe, the fear and greed index was at the fear level of 26 on Tuesday, which was higher than last week’s extreme fear of 22.
The fear and greed index is an important gauge in the crypto industry since it measures the overall sentiment of the coin. It looks at key data like Google Trends, market dominance, and social media activity.
On the other hand, the broader CNN Money fear and greed index remained at the greed level of 59. Key numbers like stock price strength, stock price breadth, and put and call options are at the greed level. Bitcoin tends to do well in periods of sustained greed.
Bitcoin price forecast
The daily chart shows that the BTC price has been under intense pressure in the past few months. It remains slightly below the important support level at $17,606, which was the lowest level in June. The coin has also moved below all moving averages. It has also formed what looks like a bearish pennant pattern.
Therefore, the coin will likely have a bearish breakout as sellers target the next key support at $15,000. A drop below that support means that the coin has higher chance of falling to $10,000.