EWFOREX.NET
Bitcoin is down 51% from its $69000 Oct 2021 all-time high. However, structurally this bear market has lasted since the $64854 Intermediate-(3) high.
Technically, the $69000 all-time high was an X wave of a double three forming at Minor degree. Double threes are corrective patterns and considered bear markets.
Price is now testing the lower bounds of the Intermediate EW channel and has reached Fibonacci 4vs3 and 4vs2 confluence. A very good sign Intermediate-(4) is complete.
Market sentiment has turned extreme negative. Alternative.me’s Fear Greed Crypto Market Sentiment Index is now at 8 out of a 100 which is extreme fear. And it’s not just the crypto market in fear mode, stocks across the globe are in bear market trends. The US SPX500 Fear Greed Index, which is a broader measure of market sentiment is at 15/100—a level considered extreme fear. This could warn of a larger bear market for both stocks and cyptos.
Although one cannot argue that it is a good time to buy. A 8 out of a 100 is extreme fear and is a good contrarian sign.
The EW structure is also signaling buy. Price is now down at Intermediate 4’s Fibonacci targets at lower channel trend line. A breach below this and a further drop is expected. However it does look like it should hold. Market sentiment is at an extreme now and should be turning. Price can stay down at these levels for sometime.