Bitcoin Struggles to Reach a New High as the Crypto Fear & Greed Index Shifts from 'Greed' to 'Fear'

The Crypto Fear & Greed Index has shifted from "Greed" to "Fear" this week, dropping from 55 to 26 as #Bitcoin falls below $58K.

Bitcoin’s price has slipped below $58,000, marking a significant drop from the all-time highs it reached earlier this year. Several factors are contributing to Bitcoin’s struggle to reach new highs, including a large number of traders who bought into the cryptocurrency at higher price points and are now facing losses.

As Bitcoin attempts to rally towards the $60k resistance, it faces an uphill battle due to traders who bought between $61.7k and $70.5k. With nearly 7 million addresses acquiring BTC in this range, a sell-off wave is triggered each time the price approaches these levels.

This behavior creates a strong resistance barrier as traders look to break even and exit their losing positions, ultimately hindering Bitcoin’s ability to reach a new all-time high.

Moreover, the Exchange Volume Momentum indicator is showing a sustained drop in on-chain activity related to exchanges, which usually points to lower investor interest in Bitcoin and decreased network usage.

This decline in momentum is further weighing on Bitcoin’s ability to gain traction and push past the current resistance levels.

Bitcoin miners sold 2,655 BTC over the weekend, adding to the downward pressure on the market. However, there was a notable spike in the Bitcoin Taker Buy/Sell Ratio on HTX Global, indicating a surge in aggressive buying and hinting at potential upward momentum in the near future.

A whale who previously dumped $467 million worth of Bitcoin in July has recently withdrawn another 1,000 BTC ($57.4 million) from Binance, just 20 minutes ago, at the current bottom price.

Over the past four days, this whale has withdrawn 2,000 BTC, totaling $117 million, at an average price of $58,525.

Bitcoin spot ETFs experienced a net outflow of $277 million last week, with significant outflows from Ark Invest and 21Shares’ ARKB ETF and Grayscale’s GBTC, further reflecting the cautious sentiment in the market.

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