Bitcoin returns to historic fear levels as it wipes weekend gains

💡 DMK Insight

Bitcoin’s $3,000 drop in just two hours is a stark reminder of the market’s volatility. With the Crypto Fear & Greed Index hitting historic lows, traders should brace for potential panic selling. This sharp decline could trigger stop-loss orders, further exacerbating the downward momentum. Look for support levels around recent lows, as a break below could lead to a cascade effect across altcoins. The current sentiment indicates a risk-off approach, which could see institutional players stepping back while retail traders react emotionally. Keep an eye on the 24-hour trading volume; a spike could signal capitulation or a potential reversal. The flip side? If Bitcoin stabilizes and the Fear & Greed Index starts to recover, we might see a buying opportunity emerge. Watch for a rebound above key resistance levels to gauge market sentiment shifting back to neutral or bullish.