Bitcoin Dips to $67K, Ethereum Falls Below $1,900 Amidst Declining Fear Index

Crypto Market Plunges, Fear Index Hits ‘Extreme Fear’

The cryptocurrency market continued its downward trend on Saturday, with Bitcoin and Ethereum hitting their lowest points since mid-August. The Fear & Greed Index also plummeted to 13, signaling “extreme fear” among investors.

Bitcoin and Ethereum Reach Multi-Month Lows

As of Saturday morning, Taipei time, Bitcoin (BTC) had fallen 4.98% in 24 hours to $67,062, dipping as low as $66,915, a level not seen since August 19. Ethereum (ETH) mirrored the decline, dropping 5.87% to $1,884, breaking below the $1,900 mark. Its intraday low of $1,878 was the lowest since August 17.

Other major cryptocurrencies also experienced significant drops. Solana (SOL) fell to $75.25, down 6.90%, while XRP dipped below $1 to $0.9872, a 3.84% decrease. The Fear & Greed Index stood at 13 on Saturday, a sharp decline from 20 the previous day.

US Stocks Mixed, Tech Sector Under Pressure

US stock markets closed mixed on Friday, with the Dow Jones Industrial Average gaining a slight 50.46 points (+0.10%) to 52,347.55. The S&P 500 fell 0.40% to 7,561.67, and the Nasdaq Composite dropped 0.91% to 25,136.27. The tech sector remained under pressure, with Nvidia down another 2% following news of its founder Jensen Huang’s resignation, and Cisco falling 6.24%. Despite the day’s fluctuations, all three major indices managed to secure their first weekly gains in several weeks, with the S&P 500 up 2.5%, the Nasdaq up 2.3%, and the Dow up 2.1% for the week.

Macroeconomic Headwinds Dampen Crypto Sentiment

On the macroeconomic front, the US Producer Price Index (PPI) for October rose 0.3% month-over-month, slightly below the expected 0.4%. However, the year-over-year increase reached a significant 6.5%, the highest in nearly four years since November 2022. Hawkish remarks from Federal Reserve officials, including Governor Williams stating that inflation is “well above target,” have fueled market expectations for a third consecutive interest rate hike in December. The US dollar index remains near a 19-month high, exerting pricing pressure on risk assets like Bitcoin.

Technical Analysis Shows Oversold Conditions

Solana (SOL) has fallen approximately 23% from its November 4 high of $98.14, trading at $75.25 with a 24-hour volume of $309 million. XRP’s trading volume was $148 million as it fell to $0.9872.

Technical indicators for Bitcoin show it in oversold territory, with the 14-day Relative Strength Index (RSI) at 24.5. The closing price on November 13th was below its 20-day, 50-day, and 200-day moving averages. The Moving Average Convergence Divergence (MACD) remains in a bearish configuration, with increasing downward momentum. Bitcoin’s price is nearing the lower Bollinger Band. Key resistance levels are at $70,321 (lower Bollinger Band), $73,092 (SMA200), and $76,712 (SMA20). Support is found at the 30-day low of $67,568, a level BTC has now fallen below.

Ethereum’s 14-day RSI also sits at 24.3, indicating oversold conditions. Its closing price on November 13th was below its 20-day, 50-day, and 200-day moving averages. The MACD is also bearish, with strengthening momentum. Ethereum’s price is close to its lower Bollinger Band. Resistance levels are at $1,971 (lower Bollinger Band), $2,149 (SMA200), and $2,219 (SMA20). The 30-day low of $1,896 serves as support, a level ETH has now breached.

Investor Sentiment Worsens Amidst Uncertainty

The Fear & Greed Index has been on a steady decline since November 7th, fluctuating between 13 and 32 over the past eight days. The current reading of 13 signifies a deepening of market fear. Investors are closely watching upcoming key economic events, including the Federal Reserve’s meeting minutes on November 18th and the PCE inflation report on November 25th, which could further influence expectations for December’s interest rate decision.