CoinDesk Report:
Analysis indicates the Bitcoin market is gripped by fear. BTC continues to breach key support levels.
The recent downtrend in Bitcoin [BTC] prices has sparked negative sentiment among traders, resulting in significant liquidations.
Despite these setbacks, buyers maintain dominance in the market, holding positions despite losses.
Fear Dominates Bitcoin Sentiment
Analysis of the BTC Fear and Greed Index on Coinglass reveals a heightened sense of fear in the market, standing at approximately 29 at the time of publication.
This indicates widespread fear among traders and investors.
Moreover, fear remains predominant in over 33% of observations, making it the prevailing sentiment in current market trends.
Significant liquidations further underscore the dominance of fear, helping explain the prominence of this cautious sentiment.
More Long Positions Liquidated
AMBCrypto’s analysis of Bitcoin liquidation volumes shows over $256 million liquidated in the past 24 hours.
During this period, long positions were primarily liquidated, with the largest volumes.
Specifically, on July 4th, long liquidations totaled nearly $142 million, while short liquidations were around $34 million, totaling over $170 million.
This represents the second-highest liquidation volume in recent months. As of publication, long-term liquidation amounts exceed $73 million. Additionally, short-term liquidation amounts have surpassed $16 million.
Derivative trading volumes for Bitcoin have also decreased in the past 24 hours. As of publication, the trading volume is approximately $29 billion, down from over $31 billion on July 4th.
The decrease in trading volume is a key factor contributing to the current position of the BTC Fear and Greed Index.
Bitcoin Continues Decline
AMBCrypto’s daily timeframe analysis of Bitcoin emphasizes why fear currently dominates the Bitcoin Fear and Greed Index.
Read Bitcoin [BTC] Price Predictions 2024-25
It’s noted that at the time of writing, BTC is trading around $54,240, marking a decline of over 5%. The previous trading day also saw a similar decline exceeding 5%.
This marks the first instance in over six months that BTC has seen consecutive daily declines of over 5%, significantly exacerbating widespread market concerns