Bitcoin fell below $67,000 on June 3, as the Crypto Fear & Greed Index plummeted to a two-month low, flashing "extreme fear". The index, which tracks metrics like volatility and social mood, reflects deep market caution.
Yet, some analysts see a rebound ahead. They point to a catch-up trade with the stock market, which has been hitting all-time highs while Bitcoin underperformed. This divergence sets the stage for a rally, they say, with Bitcoin primed to close the gap and track equities higher.
Extreme fear readings often mark bottoms, and current sentiment may have overshot. With equities strong, technical models suggest Bitcoin could soon recover, reversing recent weakness.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.