Bitcoin Fear and Greed Index hit new lows as BTC struggles to break crucial resistance

The Bitcoin Fear and Greed Index declines further, reaching the 25 mark which represents “extreme fear.” In the last 48 hours, data shows that BTC has struggled to breach the $60k price mark twice.  

Also Read: The Bitcoin Fear and Greed Index plunges to its lowest since early 2023  

According to data on TradingView, Bitcoin’s price went as high as $59,485 on July 11 but declined to $57,000 over the next 12 hours. On July 12th, the price briefly hit $59,529 but yet again failed to breach the $60k mark. 

Bitcoin fails to hit $60,000 twice 

The Crypto Fear and Greed Index indicated an extreme fear level after BTC failed to hit the $60,000 mark. TradingView data showed that Bitcoin is trading at $57,499, a decrease of about 23% from its highest price on March 14, 2024. 

Alternative.me also clarified that the Crypto Fear and Greed Index used a variety of metrics to calculate the score. The firm factored in Bitcoin’s dominance (10%), market volatility (25%), trends (10%), and trading volume (25%) for the analysis. Alternative.me further stated that the extreme fear level meant that most investors were scared, implying a good buy opportunity. 

The Crypto Fear and Greed Index, BTC reached a high score of 90 – “Extreme Greed” back in March this year, when BTC price exceeded its previous all-time high of $69,000 achieved in November 2021. The price of Bitcoin has been on a downtrend since then.

Mt. Gox and Germany implicated in BTC price dip

Mt. Gox announced that it would repay creditors who lost their investments when the company was hacked in 2014. The now-defunct crypto firm started the repayment on July 5, which could see up to $8.5 billion worth of BTC released to the crypto market. Fejau, a crypto analyst, claimed that BTC’s price struggles could be linked to the Mt. Gox repayments. 

The downward price action of Bitcoin has also been linked to the large sales undertaken by the German and United States governments. According to Arkham Intelligence data , the German government transferred 16,254 BTC to exchanges and market makers in the last 24 days. Arkham revealed that the transaction was worth $935 million per current BTC price.