Prepare for Further Bitcoin (BTC) Bleeding as the Fear and Greed Index Drops Below 30%

Since March, the Bitcoin price has been trapped in a falling trend characterized by lower highs and lower lows. According to popular crypto trader Alan Santana, a major crypto and stock correction will take place in the coming weeks before the bulls take over.

Institutional demand for Bitcoin (BTC) has nosedived in September, with U.S. spot BTC ETFs witnessing a net cash outflow of over $200 million in the past two days.

This ends an eight-day streak of cash inflows into the U.S. spot BTC ETFs, led by the ARK 21Shares Bitcoin ETF (NYSE: ARKB). As a result, Bitcoin’s fear and greed index has dropped below 30%, indicating heightened fear of further crypto capitulation.

Prepare for Further Bitcoin Bleeding

Since March, the Bitcoin price has been stuck in a downtrend, forming lower highs and lower lows. According to prominent crypto trader Alan Santana, a major crypto and stock correction is on the horizon.

The crypto analyst argues that the high Bitcoin trading volume below all the daily EMAs is a crucial bearish signal that traders should not overlook.

With Bitcoin’s price being rejected at the resistance level of around $65K recently, the crypto analyst anticipates that the flagship coin could drop to levels as low as $40K or even lower in the coming weeks.

The Last SHORT Of 2024 | Bitcoin ($40K Or Below $30K Bottom)

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Why Pay Attention

Highlighting the “easy money” expected in the near term from the possible Fed interest rate cut next month, the crypto analyst suggests that more investors will ramp up their profit-taking.

“A major correction tends to precede the change in the FEDs policies. After the correction we tend to experience long-term growth due to easier access to credit; some people call it easy money,” the crypto analyst adds.

Major stock indexes, such as the Dow Jones and Nasdaq 100, are forming a macro reversal pattern, indicating a potential sell-off in the coming weeks.

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