In quite a bearish output for the start of the year, the Bitcoin fear and greed index has dropped all the way down to 23 out of 100. This means that the BTC's market sentiment is pushing back all the way to extreme fear despite just recently brushing with neutral.
Bitcoin Fear and Greed Index
With all the things happening in the crypto market, more and more new investors are wondering when the bearish cycle will end with BTC closer to its support rather than its resistance. In addition, the current resistance that Bitcoin should hit in order for it to be considered bullish again is at $50K to $55K, per a report by CoinDesk.
Ever since Bitcoin dropped down from its all time high of $69K, the asset has been struggling to get past $50K as it traded previously from $46K to $48K. Despite countless expectations that Bitcoin would hit $100K by the end of 2021, the asset ended the year at around $48K to $49K only.
Market Sentiment Regarding BTC
Per the Bitcoin fear and greed index on Twitter, the current market sentiment regarding BTC is at extreme fear with a ranking of 23. On the scale, zero is considered the state of extreme fear while 100 is the state of extreme greed.
An article by Time noted that predictions regarding when BTC will hit $100K, as per Kate Waltman, a NY-based certified public accountant specializing in crypto, will be around Q1 of the year or even sooner.
This, however, still has to be proven as the price of BTC remains to be less than half of its predictions.
Previous Predictions Regarding the Bitcoin Price Prediction
Another prediction that BTC would reach $75K by the end of 2021 was made by Ian Balina, an investor in Bitcoin and founder of Token Metrics, a crypto research and media company. Balina noted that technical data "certainly proves" that the $100K was not completely impossible.
One of the top predictions that had passed was by a prediction made by Robert Breedlove, the Founder and CEO of Parallax Digital, a digital assets marketing and consulting firm. Breedlove predicted that the price of Bitcoin would reach $307K by October 2021, which did not happen, and that it would even reach $12.5 million by 2031.
Read Also: Top 14 Cryptocurrencies Performance Year-Over-Year | 10x, 100x, 1000x, and More
What Factors Affect the Price of Bitcoin?
The article also detailed certain factors that could affect the overall price of Bitcoin and these include supply and demand, scarcity, the news cycle, public sentiment, market events, and many more.
The publication has also noted that as a new and emerging asset, there are more factors that are influencing Bitcoin's value compared to conventional currency or security.
The other factors mentioned that could affect the value of BTC include regulation, mainstream adoption, and mining cycles.
Bitcoin Fear and Greed Index is 23 - Extreme Fear
— Bitcoin Fear and Greed Index (@BitcoinFear) January 4, 2022
Current price: $46,462 pic.twitter.com/8dzOJvP8wt
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This article is owned by Tech Times
Written by Urian B.
