After weeks of thrilling price action, the price of Bitcoin drops and trades between $93k and $95k, according to CoinMarketCap. As analysts warn of further losses as more stablecoins are launched, Bitcoin’s current price has decreased by over 3% in the last week. Bitcoin’s current price action and market sentiment are reflected in the Crypto Fear & Greed index, which currently sits at 65.
The Greed Index is a popular measure of Bitcoin’s or other token’s market performance in terms of market sentiment. Although a score of 65, based on the tracker’s December 30th update, reflects “Greed,” this is the digital asset’s lowest score since October 15th.
Bitcoin price down in the last 24 hours. Source: CoinMarketCap
Bitcoin And The Greed Index
Market commentators and traders use the Crypto Fear & Greed Index to measure the overall market sentiment over a specific coin. The score is based on market data and information such as Google Trends, market momentum and dominance, volatility, and social media.
Source: Alternative.me
Immediately after last December’s US elections, Bitcoin’s greed score consistently remained in the 70s, peaking at 94 on November 22nd. However, the last few days have been slow and uninteresting for Bitcoin as the greed metric points to 70 last week, 73 yesterday, and now, at 65.
Bitcoin Analysts Offer Different Opinions On Asset’s Future Performance
According to Markus Thielen of 10x Research, many analysts predict that there will be a parabolic price move for Bitcoin before Trump’s inauguration, followed by a price correction. He added that he has an alternative opinion, arguing that Bitcoin’s price volatility will likely increase soon.
Peter Brandt, in a Twitter/X post, offers a more creative appreciation of Bitcoin’s price action, saying that it will move into a “Hump Slump Bump Dump Pump” chart pattern. Brandt is referring to a post describing Bitcoin’s price action years ago, and he anticipates this will happen again.
If you are a Bitcoiner, take a look at this post from several years ago.
It describes the famous Hump Slump Bump Dump Pump chart construction in $BTC
Same thing could be happening nowhttps://t.co/GUVydv7F9b pic.twitter.com/dW3uAar3OQ— Peter Brandt (@PeterLBrandt) December 29, 2024
Specifically, Brandt is saying that Bitcoin will initially increase in price (hump), then dip (slump), followed by a brief recovery (a bump), then it will drop (dump), then it will rebound (pump). Ki Young Ju of CryptoQuant shares Brandt’s outlook after resharing the post.
Bitcoin Remains The Crypto Top Dog
Although the greed level is dropping and the price is struggling to hold the $95k, Bitcoin remains a top asset. Many analysts agree Bitcoin is still the best-performing asset in the last 10 years, leading traditional assets like gold and the S&P 500 by a wide margin.
Featured image from Newsx, chart from TradingView
