Bitcoin (CRYPTO: BTC) is hovering around $114,000 as anxious market participants are trying to figure out in which direction the next move will be.
What Happened: The CoinMarketCap Crypto Fear & Greed Index currently stands at 39, a notable drop from a “neutral” 47 one week ago in the “fear’ zone.
Pseudonymous trader CrediBULL Crypto noted that throughout the current bull cycle, a consistent pattern has emerged: impulsive waves rarely reach extreme fear levels, while corrective waves often linger in "extreme fear" (<25).
Currently, with the index in "fear," historical trends suggest a near-term bottom is forming, typically preceding the next leg of the impulsive move. This supports the view that recent dips are prime buying opportunities rather than a trend reversal.
Also Read: Eric Trump Repeats His $1 Million Prediction For Bitcoin, Foresees An ‘Unbelievable’ Q4 For Crypto
What's Next: Trader Matthew Hyland highlighted that Bitcoin's chart structure is exceptionally clean, showing an inverse head-and-shoulders breakout with a successful retest holding as support.
A potential double bottom around the $118,000 neckline could further strengthen bullish momentum.
Monthly Bollinger Bands are at their tightest ever, signalling compressed volatility. Entering the year’s final quarter after the halving is a period historically associated with cycle highs.
Trader Timothy Peterson emphasized that historical patterns and current conditions suggest a positive trend, though major gains may not fully materialize until the third week of the month.
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