In Brief

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  The Fear & Greed index fell sharply, plunging into an extreme fear zone.
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  Bitcoin has fallen below a critical short-term threshold often followed by a reversal.
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  Over a billion dollars liquidated in crypto have intensified recent bearish movements.
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  History shows these technical conditions often precede an unexpected bullish comeback.

Bitcoin and Extreme Fear: The Shadow of a Hidden Signal

The crypto market, marked by the boom of stablecoins, has switched to fear mode. The famous “Fear & Greed” index of bitcoin collapsed to 28, its lowest since March. This type of brutal drop of 16 points in 24 hours reflects a violent capitulation. With each technical threshold breach, the hemorrhage worsens. Bitcoin plunged below 110,000$, Ethereum broke 4,000$, and altcoins follow the same slope.

In just a few days, over a billion dollars of positions were liquidated.

But this is not a first. In March, the index already showed such low levels. Back then, bitcoin was trading around 83,000$. What seemed like a red alert turned into the perfect entry point for the boldest.

Today again, some analysts believe that this extreme fear could well be the silent catalyst of a new bullish wave. When the index plunges, opportunities emerge, remind the veteran crypto traders.

The question arises: what if this panic is precisely the missing fuel?

Deteriorated Sentiment and Technical Signals: Often a Forerunner Cocktail

Technical indicators tell a parallel story. The price of bitcoin has fallen below the short-term investor cost basis, a level which, historically, has preceded big reversals. Each cycle shows us that when the price breaks this threshold, the market takes a last bearish breath… before soaring.

History is clear: the three times this has happened since 2023, a sudden reversal followed.

The Fear & Greed index, on its side, shows that each passage into fear zone served as a springboard for a recovery. These technical and psychological data accumulate like pieces on a board ready to tip over.

For now, no one knows the exact date of the reversal. But everyone is watching the same sky.

Key Points About the Current Crypto Weather

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  The Fear & Greed index dropped to 28, a threshold rarely reached this year;
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  Bitcoin broke below 110,000$, and its current price is 109,909$;
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  The BTC price is below the average short-term investor threshold;
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  Historically, these conditions often precede rapid recoveries.

While the crypto market still wonders, October is fast approaching. The famous “Uptober”, often associated with explosive rebounds, is already being talked about. According to Arthur Hayes, former CEO of BitMEX, several macroeconomic and technical reasons give hope for an imminent bull run. Between an unstable geopolitical environment, pressure on fiat currencies, and increased liquidity levels, conditions could shift faster than we think.