Summary:
- The crypto fear and greed index is currently at a 6, the second-lowest since August 2018, when it fell to a value of 5.
- Bitcoin has lost the crucial $20k support level and hit a local low of $18,742, with the weekend possibly opening the doors to more losses.
- A drop below $20k could turn the Bitcoin market into one of knife-catching.
There is a level of extreme fear in the crypto markets. The crypto fear and greed index has hit a value of 6, its second-lowest level since August 2018, when it hit a value of 5. The screenshots below further demonstrate the current market mood due to the ongoing crypto bear market.
Bitcoin Loses the Crucial $20k Support Zone.
The crypto fear and greed index dropping to a jaw-dropping six comes in the wake of Bitcoin losing the crucial $20k support zone and posting a local low of $18,742.
In a blog post yesterday, former Bitmex CEO Arthur Hayes cautioned that the low trade volume characteristic of weekends could result in further losses by Bitcoin and Ethereum below $20k and $1k, respectively. He said:
How low can we go? I believe we’ll find out on this fateful weekend. This week Bitcoin and Ether bounced off of $20,000 and $1,000 respectively in an impressive fashion. Can they hold a renewed attack on these levels during a weekend where no fresh filthy fiat can be deposited on crypto exchanges?
Bitcoin are You Okay – Arthur Hayes
Arthur Hayes has since Tweeted about Bitcoin losing $20k by alluding to the late Michael Jackson’s hit of ‘Smooth Criminal’ by asking if Bitcoin was okay, and whether it had been hit struck by the Central Banker. His tweet can be found below.
#Bitcoin, are you okay? So, Bitcoin, are you okay?
Are you okay, Bitcoin?
You’ve been hit by-You’ve been struck by-
The Central Banker pic.twitter.com/lg9dpKvS7w— Arthur Hayes (@CryptoHayes) June 18, 2022
Bitcoin Below $20k Is Just Knife Catchers – Alex Krüger
In a similar analysis of Bitcoin losing its $20k support, BTC and crypto community member Alex Krüger stressed the importance of trading above this level. According to his analysis, Bitcoin losing $20k could transform the market into one of knife catching. He explained:
[The] way I see it 20k is decisive for the future of crypto.
BTC above 20k and it can continue being traded as a risk asset. With BTC above 20k crypto remains a somewhat investable asset class.
Below and it’s just knife catchers, retail DCA, investors and miners puking, hate and anger.
