Bitcoin’s price nears $79k after a nearly 25% weekly gain, yet market sentiment is cooling. The Fear & Greed Index dropped over 9% from the "Greed" level while BTC holds near its highs, forming a notable divergence. Despite this sentiment cooldown, demand remains strong, with ETFs buying heavily and on-chain bids holding near $80k. Analysts suggest larger players may be deliberately cooling sentiment to shake out weak hands. Strong underlying demand positions Bitcoin for a potential September rally, targeting a move above $82k. This divergence between price and sentiment is a key signal for investors watching the market.
Bitcoin’s price peaked at nearly $79k following a powerful weekly increase of almost 25%, pushing short-term holders deeper into profit. Against this backdrop, a 1% intraday pullback could point to a supply zone forming near $80k as some traders took profits.
The Bitcoin Fear & Greed Index is exposing a significant divergence between price and sentiment. The index closed the week more than 9% lower, moving away from the “Greed” territory even as BTC remains close to its recent highs.
This divergence between price and sentiment has caught analysts’ attention, raising speculation about a potential manipulation tactic developing underneath Bitcoin’s price action. The pullback in the index could signal cooling sentiment, yet this cooldown appears to have had little effect on demand.
ETFs have bought the lion’s share of BTC in the past few days, and on-chain spot bids forming around $80k are still holding up. This raises the question of whether bigger players are “deliberately” cooling sentiment to shake out weak hands before a potential move back above $82k.
Reinforcing this bearish scenario, the Fear & Greed Index can be seen to reverse and shoot higher by more than 15% within just 24 hours, entering the “Greed” category deeper than ever before. This development only further confirms the likelihood of large funds manipulating the price to create FOMO around the cryptocurrency.
As history has shown, it is at the peak of euphoria that Bitcoin tends to top. Therefore, it is highly plausible that the price will encounter resistance around $82k in the short term.
As long as the underlying demand remains strong, Bitcoin should be poised for a strong early September jump. This would put it on track for a potentially fourth straight bullish September, making the divergence a key signal to watch.
