BTC Fear & Greed Index At Extreme High; Should You Worry?

BTC price kick-starts another session on the slimmer note. The pioneer cryptocurrency finally smashed the January lows,  amid sustained selling pressure. BTC’s price is on the verge of the straight seventh week of losses. Investors lost their patience and further fastens the belt for another downswing as indicated by the prevailing technical setup.

BTC price gives no surprise as started the new trading week on a lower note.
The Fear and Greed Index fell to an extreme level indicating fear among retail investors.
A descent of 12% cannot be ruled out amid the existing technical setup on the weekly chart.

BTC price stumbles

BTC price took no time to break the January lows and make another awful start to the trading week. The price has breached a significant support level on the weekly chart. This indicates a descent of another 12% in an already depreciating coin.

The Crypto market bleeds as the bear took the charge. BTC has crashed more than 50% since it made record highs in November at $69,000. The descending trend line on the weekly chart acts as a resistance for the buyers. As the bulls attempted to breach the bearish slopping line in March but failed to do so. In fact, it intensify the selling pressure and pushed the price to breach the recent swing lows placed at $32,717.08.

Currently, the price holds near the support zone with a fragile outlook. Now, the reason to have a bearish view is the mounting volume pressure that accompanies price.

In order to fetch the sell-side liquidity, Bitcoin must manage to attract investors below $33,000 on a daily basis as this would indicate the presence of significant bearish momentum. A sustained downward movement would push the price to meet the lows last visible in July at $29,000.

Conversely, a shift in the bullish sentiment amid a spike in buy order would invalidate the bearish theory in the asset. A move above the 50-day EMA (Exponential moving average) at $42,532.73 would make bulls cheerful. But that look challenging for now.

As of press time, BTC/USD reads at $39,982 down 3.09% for the day. The largest cryptocurrency holds the 24-hour trading volume at $35,046,532,955 with 26% gains as update by CoinMarketCap.