Key Points
- Bitcoin’s investor enthusiasm seems to be waning, with a lack of risk-taking observed.
- The balance between profit-takers and risk-takers will be crucial for Bitcoin’s future performance.
Bitcoin’s investor appetite for risk appears to be slowing down. Despite hitting the $100K milestone, the cryptocurrency experienced a more than 5% dip later. This dip typically draws bargain hunters, but the current subdued investor greed indicates a decrease in the desire to hold.
The recent bull run has already created many millionaires and billionaires. Now, the focus is shifting towards those who are betting on Bitcoin’s next peak as a long-term investment. The balance between those cashing in on profits and those willing to take risks for larger returns will play a crucial role.
Bitcoin’s Lack of Risk Appetite
Bitcoin’s price chart on the 1-day timeframe is showing mixed signals. Despite reaching $100K, the MACD indicates a bearish crossover, and the RSI is in neutral territory. The question is whether investors are ready to embrace volatility for the chance of larger gains.
The greed index, unlike the previous ATH in March, has stayed below 90 this time, showing a lack of risk-taking. This is pushing Bitcoin back into the FUD (fear, uncertainty, doubt) zone. This may create strong resistance among both new and experienced investors, with many likely choosing to cash out for immediate gains instead of holding for the long term.
The $100K milestone was short-lived, with profit-takers dominating the exchange flows. Both short-term and long-term holders cashed in on gains from previous dips, while risk-takers did not step in to neutralize the selling pressure. If this trend continues each time Bitcoin hits $100K, it could create a loop, where the lack of greed gives profit-takers a better chance to exit the market before prices can sustain higher levels.
Bitcoin’s Potential Rebound
After hitting a new ATH of $103,629, Bitcoin’s price closed at its lowest point of the day, $92,285. This created another dip-buying opportunity, especially for short-term traders looking for a potential rebound. As a result, Bitcoin volume increased by 5%, reaching around $124 billion. Exchange outflows continued to dominate the trading platforms, indicating strong investor conviction.
Whales also took advantage of the situation, buying up 600 Bitcoins at a discounted price of $98,083. These factors suggest a potential bottom formation around $96K. This could set the stage for a greater bounce back, especially if new capital enters the market. This would push Bitcoin just 4% into realized profits by the time it hits $100K. This modest gain may not trigger a significant sell-off, as it’s unlikely to break even for many investors, encouraging them to HODL.
The next key price range to watch is $96K – $98K, where significant activity is expected. Renewed greed in this range could fuel further momentum. However, monitoring the liquidity within this price band will be crucial in the coming days.
