On June 25, the cryptocurrency Fear and Greed Index dropped to 30 points, a level last seen in September 2023.
The metric’s decline occurred amid a general downturn in the crypto market. From June 24 to 25, Bitcoin fell from $62,500 to $59,100, dragging other assets down with it.
At the time of writing, digital gold had recovered to $60,800.
According to Coinglass, positions worth $302 million were liquidated in the past 24 hours, with $222 million in long positions.
Analyst Willy Woo attributed the situation to a “cascading long squeeze” in Bitcoin, triggered by the asset’s drop to a 53-day low and miners’ capitulation following the halving.
…speculators kept adding to new long positions, just adding more fuel for more liquidations in a cascading long squeeze.
Bridging us down to the 58k cluster, which just got taken out. pic.twitter.com/8Pvzccm8vF
— Willy Woo (@woonomic) June 24, 2024
“Speculators continued to open new long positions, simply adding more fuel for new liquidations. This brings us to the $58,000 cluster, which was recently surpassed,” the expert wrote.
Woo added that miners are “actively selling” the leading cryptocurrency to upgrade equipment, as older devices are no longer profitable.
Woo identified $54,000 as the next critical level for Bitcoin. Falling below this mark could push the market into a bearish phase.
“Miners’ capitulation is one of the most reliable indicators of a subsequent rally, ending periods of sideways or bearish sentiment. It’s essentially a waiting game for hash rate to rise and the futures casino to collapse,” Woo noted.
Analyst and MN Trading founder Michaël van de Poppe highlighted Bitcoin’s strong rebound from range lows.
Relatively strong bounce on #Bitcoin from the range lows. #Altcoins are up even more since that level.
Bitcoin dominance starts to fall slightly, through which the Mt. Gox even starts to get priced in. pic.twitter.com/b8qhVaX20V
— Michaël van de Poppe (@CryptoMichNL) June 25, 2024
He added that altcoins have risen even more from this level, and the dominance of the leading asset has begun to decline.
On June 24, spot Bitcoin ETFs recorded seven consecutive days of outflows. During Monday’s trading session, net outflows from funds totaled $174.5 million.
Bitfinex analysts suggested that the leading cryptocurrency is currently in a consolidation phase amid sell-offs by long-term holders.
In the fourth quarter of 2024, former Goldman Sachs CEO Raoul Pal anticipates significant growth in digital gold and the market as a whole.