Bitcoin sentiment has shifted from FOMO to FUD over the past few weeks, with the Fear & Greed Index dropping from 74 to 50. BTC has retreated from near its $82k high to around $76k, a decline exacerbated by the US Senate failing to advance the CLARITY Act and the Federal Reserve raising interest rates for the first time since 2023. CryptoQuant’s Bull Score plummeted from 80 to 60 in one week, signaling a marked weakening of the bullish setup, while ETF outflows and a negative Coinbase Premium Index confirm waning US demand. A bear trap signal has emerged, however, as a whale opened a $50 million short position with liquidation set at $77k, creating conditions for a potential short squeeze if the price rebounds. The NUPL indicator remains above the red zone, suggesting the market has not yet reached broad capitulation.
Source: Read the original article
