Bitcoin’s price has retreated for four consecutive days, as the crypto fear and greed index shifted back into the fear zone amid rising geopolitical risks. Currently, Bitcoin is trading at $60,200, marking its lowest point since September 18 and an 8% decline from its peak last week.
This weakness comes as investors adopt a risk-off sentiment in response to escalating tensions following Israel’s pledge to retaliate for recent attacks. Traditional risky assets, including the Dow Jones, S&P 500, and Nasdaq 100, have also seen continued sell-offs, while bond yields have increased. The US dollar index has risen to $101.50, its highest level since September 13.
Additionally, Bitcoin’s decline has been influenced by some large holders, or whales, selling off their assets. Notably, Ceffu was a significant seller, withdrawing 3,372 Bitcoin, valued at $211.3 million. This account has been offloading Bitcoin, Ethereum, Solana, and Avalanche, and is reported to hold over $2 billion in assets, according to Arkham.
Another investor sold 265 Bitcoins for $17.5 million last week, having originally purchased them for $6.2 million two years ago, resulting in a profit of $11.5 million.
According to Santiment, the current market reversal is linked to heightened sentiment surrounding Bitcoin on social media. Historically, Bitcoin tends to decline when there is excessive enthusiasm among social media users.
Meanwhile, the crypto fear and greed index has fallen to the fear zone at 39, down from a peak of 60 last week.
On a more optimistic note, October is typically a strong month for Bitcoin, with average returns around 20.6%. This trend is often followed by November, which averages returns exceeding 46%.
Key catalysts that could drive Bitcoin’s price higher include potential Federal Reserve rate cuts and the conclusion of the American election period.
Bitcoin price hit a key resistance
From a technical standpoint, the coin has pulled back after encountering significant resistance at $66,000, a critical level that aligns with the highest swings since March of this year. Trader Peter Brandt noted that a clear breakout will be confirmed if the price successfully flips this resistance and rises above its all-time high.
On a positive note, the coin has stayed above both the 50-day and 200-day moving averages and has formed an inverse head and shoulders pattern. This suggests a potential rebound in the coming days.