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While the bitcoin dropped below $ 100,000 yesterday was of symbolic importance, it is the level of $ 95,000 that could prove key, according to James Check, or Checkmate, as he is known in the online world.
Almost 57% of all dollars invested in bitcoin are now underwater at the $100,000 level, according to the Checkhelping to explain the current deep fear in the markets. However, Check said, the losses now amount to about $20 billion, or 3% of bitcoin’s market capitalization. The prices of the previous prices in 2024 and before this year saw losses relative to the market capitalization reaching the level of 7%-8%.
A drop to $95,000, however, brings losses closer to the 10% area, which, Check said, marks the point when historical bear markets tend to go.
“Current market conditions are some of the most difficult to read in my experience,” Check continued. “We don’t want to see the price fall below $95,000, but I still expect the bulls to mount a hellish fight to defend it.”
Speaking of deep fear, Coinglass’ Fear and Greed Index it fell right into the “Extreme Fear” range at level 24. Readings of Extreme Fear are, on occasion, associated with at least short-term funds in bitcoin. By comparison, the gauge fell as low as 21 during the April rate panic in which bitcoin fell to $75,000.
Read more: Galaxy Research Chief Capitulates on Bullish Bitcoin Call After Tuesday’s Plunge
