Fear And Greed Index Plunges to Lowest Since January 2023 As JPMorgan Predicts Crypto Market Recovery in August

The Crypto Concern and Greed Index plunged to its lowest stage since January 2023, however JPMorgan sees mild on the finish of the tunnel, predicting a crypto market rebound subsequent month

The index, which tracks market sentiment in direction of Bitcoin (BTC) and different cryptos, has plummeted to 25 as of two:45 a.m. EST to point “excessive concern” amongst buyers. This comes after the flagship crypto failed to interrupt above the psychological $60K resistance stage for the second time previously 48 hours.

Concern And Greed Index Might Be Accompanied By A Bearish Chart Sample Quickly

Crypto and foreign exchange dealer Justin Bennet shared together with his 11,000 followers that the $60K mark rejected Bitcoin “but once more” in a July 11 submit on X. He added {that a} “rising wedge” may begin to type consequently, which could foreshadow additional draw back within the subsequent few days.

$BTC rejected from $60k but once more.

And now we now have a possible rising wedge forming, which may level to additional draw back.

We’ll see if we get a full retest of channel resistance, however this 4h sample is one to observe.#Bitcoin pic.twitter.com/hyjOW2t7UP

— Justin Bennett (@JustinBennettFX) July 11, 2024

The primary contributor to the unfavourable sentiment out there is information that the defunct crypto trade Mt. Gox began repaying its collectors from July 5. Buyers and merchants concern the potential ramifications of as much as $8.5 billion price of BTC being offered into the market through these repayments.

There has additionally been promoting stress from wallets linked to the German Authorities. Roughly $935 million price of BTC, or 16,254 Bitcoins, has been despatched from these wallets to market makers and exchanges all through the previous 24 hours, in keeping with on-chain information from Arkham Intelligence.

JPMorgan Analysts Anticipate A Market Rebound

Regardless of the unfavourable sentiment, Wall Avenue agency JPMorgan stated in a July 10 analysis notice that the crypto market may rebound quickly.

That’s as a result of it sees downward stress in the marketplace easing by the top of this month. Promoting stress attributable to collectors promoting property refunded by the defunct Mt. Gox crypto trade and Gemini, in addition to gross sales of seized crypto property by the German authorities, will wane by the top of this month, it stated.

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