Bitcoin BTC, the most capitalized cryptocurrency has witnessed a major downtrend since its peak in March. It reached an All Time High ATH on the 14th of March 2024 at $73,737.94 with a circulating supply of 19.6 million and market capitalization of $1.35 trillion.

Since its ATH in March, it has dropped 21.2% as at the time of writing, trading at 58,045.76. The current price represents a 0.2% drop in price in the last 24 hours.

These factors could sway investors behavior towards a pair. The Fear and Greed Index FGI is used to measure this market sentiments. With Fear Of Missing Out FOMO, and Fear Uncertainty and Doubt FUD, often used as drive which controls market behaviors among investors.

The FGI is scaled at 0 – 100, from extreme fear at 0 to extreme greed at 100.

This signifies a sign of worry among investors in the market. Leading to sell pressure within the market. Investors shorten trading pairs in order to limit losses. The sellouts often lead to decease in price. Which could offer good entry and re-entry spots.

The greed metrics measures the activeness of investors in jumping into a trade. FOMO is one of the indicators that characterizes investor behavior on the greed scale. With many investors having a fear of missing out, the buy pressure shoots price up.

With investors going long on trades, exit opportunities are created for traders to take profits before market correction kicks in.

• 2012: +164.4%
• 2013: +5605.1%
• 2014: -58.4%
• 2015: +38.2%
• 2016: +130%
• 2017: +1,247.3%
• 2018: -71.6%
• 2019: +94.4%
• 2020: +309.5%
• 2021: +62.4%
• 2022: -65.2%
• 2023: +162.8%
• 2024 (YTD): +41.2%

The current indicator from this data shows a year on increase of the BTC over the years. With the major negative indicators consistent with each 2 years after halving.

The BTC Current Status

Some of the positive factors that are looked at as potential sway metrics towards an upward push include:

• Possibility of Durov being found guilty
• Potential moves to regulate the crypto space
• Possible increase in Fed rate

Expectations for 2024

With the BTC chart forming cup and handle pattern, there is optimism among several communities that the downward trend will soon be over. The chart is a bullish consolidation pattern in which previous correction of upward pattern is rebounded upwards towards the previous high. And creating a sideway pattern at the end of the curve. Forming a cup with a handle in the process.

This pattern i used by traders in identifying good entering spot into a trade. The formation of a handle at the end of such cup forming curves, has been understood to result in the breakout towards a new high.

 

The BTC chart has also shown a consolidation pattern that is tightly compressed, which makes analyst consider the inevitability of BTC resulting in an eventual breakout.

While the immediate short-term outlook of the bitcoin chart provides little certainty in its short-term directions, there is an optimism that it will end the year strongly, which begin a movement that could result in the formation of a new ATH at the end of the upward trajectory.