Is ‘Uptober’ back? Market fear craters as Bitcoin reclaims $114k

The Crypto Fear and Greed Index has slipped to its lowest level since March, raising caller concerns implicit capitalist assurance even as Bitcoin and Ethereum effort a recovery.

Data shared by CryptoQuant expert JA Maarturn connected Sept. 29 showed sentiment falling from a neutral 40 successful August to an utmost fearfulness level of 28. The scale past touched this scope successful March, erstwhile Bitcoin traded astir $80,000.

Crypto Market Greed and Fear Index (Source: CryptoQuant)

Meanwhile, the crisp deterioration successful sentiment coincided with dense sell-offs successful large assets. Both Bitcoin and Ethereum slipped beneath cardinal intelligence levels of $110,000 and $4,000 past week, deepening the consciousness of uncertainty.

Yet the retreat proved short-lived. As of property time, Bitcoin price has recovered $114,000 and Ethereum traded implicit $4,100, suggesting that panic selling has fixed mode to a much balanced market.

Market bottom?

Asset manager Bitwise argued that the fear-driven backdrop could correspond a bottoming phase.

It stated:

“Last week, sentiment has doubly reached ;extreme fear’ levels connected an intraday basis, yet bitcoin has shown comparative resilience, holding astir ~$108k – a level that besides aligns with the short-term holder outgo ground – this appears to supply a beardown enactment for bitcoin close present arsenic sellers are progressively exhausted.”

The steadfast further pointed retired that Bitcoin was inactive up astir 3.7% successful September contempt past week’s turbulence. This is notable considering September is historically the weakest period of the twelvemonth for the apical crypto.

In contrast, the last 4th often delivers beardown gains, with November repeatedly ranking arsenic Bitcoin’s astir profitable month.

According to Bitwise, this humanities signifier makes existent weakness look much similar an accidental than a informing sign.

Data from Glassnode supports the case, showing that short-term holders are present realizing nett losses, a information that has historically marked reset points earlier renewed accumulation. Periods of capitulation, wherever caller buyers merchantability astatine a loss, person often provided the instauration for longer-term rallies.

Bitcoin Short-term Holders Net Profit and Loss (Source: Glassnode)

Bitcoin prepares for Uptober

Considering the flagship integer plus terms resilience, crypto trading steadfast QCP posited that BTC traders are optimistic of an “Uptober” rally.

According to the firm, gradual optimism has returned to the perpetual futures market, wherever leveraged longs person re-entered aft past week’s liquidations.

QCP stated that Bitcoin unfastened involvement has risen from $42.8 cardinal to $43.6 billion. At the aforesaid time, backing rates stay affirmative and positioning connected platforms similar Hyperliquid has swung decisively backmost toward the agelong side.

However, the steadfast warned that a sustained uptrend volition lone beryllium confirmed if BTC clears the $115,000 threshold. It added:

“Options markets bespeak this hesitation, with enactment skew and OI successful BTC and ETH dilatory normalizing arsenic traders rebuild conviction.”

The station Is ‘Uptober’ back? Market fearfulness craters arsenic Bitcoin reclaims $114k appeared archetypal connected CryptoSlate.