Bitcoin Drops 1.79% to $105,560 Despite Greed Index at 63

Crypto market sentiment has remained stable despite Bitcoin experiencing a nearly 2% drop over the past day, trading close to the $105,000 mark. The Crypto Fear & Greed Index recorded a "Greed" score of 63 out of 100 on Wednesday, a slight decrease from Tuesday's 64, as Bitcoin (BTC) fell by 1.79% to $105,560 after nearly reaching $108,000 the previous day.

Analysts have been speculating about when Bitcoin might retest its all-time high of $111,970, reached on May 22. Optimism was high on Monday as its price hovered just below $109,000, before slipping into another short-term downtrend. Some analysts noted that the third quarter, which began on July 1, is typically a weaker period for Bitcoin. According to historical data, this quarter is generally the slowest for both Bitcoin and Ethereum, with Bitcoin averaging a 5.47% gain during the third quarter each year since 2013. If this trend continues, it would place Bitcoin’s price around $111,000 by the end of September, just shy of its all-time high.

Bitcoin's performance during the second quarter closely matched its historical average, posting a 31% gain to $108,383, approximately 4% above the 27% average Q2 return since 2014. Despite the recent dip, Bitcoin dominance remains strong, sitting around 65.5% and up nearly 13% so far this year. Meanwhile, the Altcoin Season Index is at a "Bitcoin Season" score of 20 out of 100, indicating that the market is still heavily favoring Bitcoin. However, CryptoQuant's head of research noted that the Bitcoin Bull Score Metric has declined to a level of uncertainty, suggesting that the market is in a neutral territory.

Bitcoin has recently experienced a slight decline, dropping to approximately $105,889, marking a 1.2% loss. Despite this dip, the overall sentiment in the cryptocurrency market remains steady. Bitcoin has been trading within a range of $103,000 to $109,000 for an extended period, which has led many to reassess what was once considered its "floor." Although there have been predictions of a sharp correction to $70,000 or $80,000, current market dynamics suggest a much higher underlying support for the leading cryptocurrency.

The resilience of Bitcoin is further bolstered by growing institutional demand. Fresh cash inflows from entities like BlackRock’s ETF and increasing interest from major institutions worldwide are contributing to Bitcoin's acceptance in traditional finance. This trend is evident as some lenders in the U.S. now accept Bitcoin as collateral for home loans and mortgage checks, indicating a move towards mainstream use. Additionally, Bitcoin's limited supply, capped at 21 million coins, and the decreasing rewards for mining new coins, further enhance its value. Some experts believe that 1 to 2 million Bitcoins are already lost forever, reducing the circulating supply to possibly closer to 19 million coins. As more institutions invest, this scarcity could drive prices higher.

Major financial companies continue to show confidence in Bitcoin. For instance, one of Germany’s top banks plans to allow customers to trade Bitcoin through their accounts. This trend is part of a broader shift where banks, firms, and even governments are increasingly dealing with Bitcoin. Michael Saylor, the head of MicroStrategy, has been consistently buying Bitcoin, with his company now holding over $64 billion in BTC after adding nearly 5,000 more coins. His steady buying, regardless of price fluctuations, demonstrates a strong belief in Bitcoin’s future. Furthermore, Kazakhstan’s central bank plans to build a reserve of Bitcoin and other cryptocurrencies, indicating that governments are beginning to recognize Bitcoin as a valuable asset.

At its core, Bitcoin’s strength lies in its simplicity. In a world where inflation weakens traditional money, Bitcoin offers an alternative. While gold has long been used to combat inflation, Bitcoin’s digital nature and limited supply make it a strong contender. With more institutions adopting it and fewer coins available, Bitcoin is poised to continue growing and playing a more significant role in global finance.

Bitcoin has been trading in a steady range over the past week, oscillating between $105,000 and $108,000. The price jumped from just under $105K on June 25 to nearly $108K on June 26, then moved sideways. This pattern, with small dips and recoveries, indicates strong support forming near the $105K level. Although BTC briefly dropped below $106.5K on July 1, it continues to make higher lows, keeping the bullish trend alive despite short-term swings. From a technical perspective, $105,000 now acts as a strong support level, while $108,000 serves as resistance. If Bitcoin breaks above $108K, it could climb toward $110K in the coming days. However, if the price drops below $105K, it might pull back to around $103K. Strong fundamentals make a deep correction less likely.

Overall, Bitcoin appears to be consolidating while building bullish momentum. Growing institutional interest, limited supply, and increasing real-world use help support the price. If positive sentiment remains strong, Bitcoin could soon break past $108K and aim for $110K in the short term.