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Bitcoin Craters to $10,500, Sentiment Hits December Lows: Can BTC Bounce?

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Over the past few days, bears have managed to wrest the wheel of the proverbial Bitcoin car from bulls. And since then, this class of investors has been driving BTC off a cliff.Related Reading: Crypto Investors Believe There’s More Pain Ahead For the Altcoin MarketAs of the time of writing this, Bitcoin is trading at $10,600, having lost 6.54% — around $700 — in the past 24 hours. Coin360 data suggests that BTC is down 10.75% in the past week, marking one of the largest weekly losses during the early phases of this cycle.This dramatic move lower comes shortly after countless cryptocurrency investors on Twitter were calling for bulls to commence their next leg to the upside.Bitcoin Market Sentiment Falls Off a CliffDespite the fact that the Bitcoin price is still over three times higher than it was back in during the capitulation event of December 15th, market sentiment is currently extremely bearish.In fact, as first spotted by crypto-friendly economist Alex Krüger, the Bitcoin Fear & Greed index has reached the December lows.The indicator, which aims to measure how the market is feeling about BTC’s price action, reads an 11 — “extreme fear”.Are you afraid?I am not.(Fear & Greed index currently at the Dec/2018 lows)Next key level below at $10300-10325. $BTC pic.twitter.com/Fm5KdhU6N4— Alex Krüger (@krugermacro) August 14, 2019 While this number may seem entirely arbitrary, especially considering the bullish momentum Bitcoin has experienced in the first half of 2019, the index’s readings are backed by data.The website that hosts the index claims it analyses a fair mix of volatility, market momentum and volume, social media trends, surveys, dominance, and Google Trends to get the gist of how cryptocurrency investors are faring.So, to put it short and sweet, the crypto community is just as bearish on BTC as they were in December’s capitulation. With that in mind, is there any chance at Bitcoin bouncing?Where is BTC Price Going Next?According to a number of analysts and the creators of the Bitcoin Fear & Greed Index, a bounce — a short-term one at least. A description of the index reads:“The crypto market behavior is very emotional. People tend to get greedy when the market is rising which results in FOMO (Fear of missing out). Also, people often sell their coins in irrational reaction of seeing red numbers… Extreme fear can be a sign that investors are too worried. That could be a buying opportunity.”

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