Because the starting of this month, Bitcoin has witnessed robust bearish pressure, hindering the flagship asset from undergoing one other major rally. After falling below the $80,000 mark, BTC has began to recuperate again, trading above the $85,000 level. In consequence, investors’ sentiment has began to accumulate toward a more neutral zone.
A Change In Bitcoin’s Market Sentiment
With Bitcoin’s renewed upward movement gaining traction, several metrics are starting to point out positive developments. Investor sentiment has also improved, painting a bullish outlook for BTC’s market dynamics.
Axel Adler Jr., a seasoned on-chain expert and macro researcher has outlined a notable advancement within the Bitcoin Fear and Greed Index because it shows signs of stabilization. The Fear and Greed Index is a technical tool that measures the general sentiment of the BTC market, using quite a lot of combined data sources to create a single figure.
This modification within the index implies that investor sentiment is progressively improving, possibly reducing current selling pressure and providing a more stable trading environment. The shift coinciding with BTC’s present consolidation might spark fresh bullish momentum. Meanwhile, persistent uncertainty out there is more likely to keep traders cautious within the near future.
In response to the macro researcher, the 90-day (quarterly) Bitcoin Fear and Greed Index has dropped by about 22 percentage points during the last two months, migrating from the Extreme Greed zone to more moderate levels.
Within the event that the index drops one other 10 to fifteen points within the short term, the market may completely cool off. Thus emotional fluctuations might lessen and players would grow to be used to negative aspects. Nevertheless, it would take 4 to six weeks for the crucial index to say no by one other 10 to fifteen points at the present rate.
While the 90-day Bitcoin Fear and Greed Index is shifting to more moderate levels, the 30-day (monthly) moving average is already creating a neighborhood bottom. This is analogous to how the last slump ended when BTC’s price fell to the $54,000 zone.
Has BTC’s Current Correction Reached An End?
It’s price noting that after marking a low of $54,000, BTC witnessed a big rally of over 107% to its current all-time high of $109,400. Taking a look at BTC’s recent price motion, Mags, a crypto analyst expects an analogous development to occur because the flagship asset marks a recent low of $76,600.
Nevertheless, this anticipated price surge hinges on a critical Relative Strength Index (RSI) support level of 45. Should this RSI support hold, Mags foresee a 64% upswing from the position if it only returns to the declining trendline.
Moreover, the move, which corresponds with the 1.618 Fibonacci extension level, will bring BTC’s price to the $128,000 level, marking a recent milestone and an all-time high for the asset.
Featured image from Unsplash, chart from Tradingview.com
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