- Bitcoin has surpassed $28 thousand dollars a unit and the market sentiment marks optimism.
- The current value is 57 after having touched a maximum of 68, which is the highest record in more than a year.
- Analyst Best Owie noted that at times when the index has entered greed territory, it has typically been bullish so there is a chance Bitcoin could break the $30,000 resistance.
After months of fear, uncertainty and fear in the face of the sharp drop in Bitcoin and the rest of the cryptocurrencies, the sun has risen again for the sector. The registered green candles have returned the illusion and joy, to the point of being compared to what happened in November 2021, the month in which BTC reached its all-time high at $68,000 dollars.
With the resistance of $28,000 broken and a maximum of $28,800 reached (at the time of writing this article the price was around 27,300), the feelings that motivate the market are optimism and greed, as indicated by the index called Crypto Fear & Greed Index. The current value is 57 after having touched a maximum of 68, which is the highest record in more than a year.
Hope returns to the crypto market
At the beginning of 2023, with more than a year to go before the halving, the market was throbbing with a mixture of fear and hope. The closing of 2022 was difficult, with the index in extreme fear. A little over three months after that, the picture is totally different, with BTC taking the lead in this positive mini rally.
“When the index is at fear, which is a score between 0-47, it shows that investors are very wary of the market, therefore new money is not flowing into the market. But when the index is greedy, from 53 to 100, it means that investors are very greedy and are more willing to invest.” reported Bitcoinist.
Of course, this indicator does not mark truths: when one sells there is another who is buying and both believe that they are making the right play. Extreme fear can end up being a very good buying opportunity. While the arrival of new investors can lead to a market correction.
“The behavior of the cryptocurrency market is very emotional. People tend to get greedy when the market is going up, which results in FOMO (fear of missing out). Also, people often sell their coins as an irrational reaction to seeing red numbers. With our we try to save you from your own emotional overreactions”, explain its creators.
Bullish Sentiment May Boost Bitcoin
Both the traditional and digital asset markets are considered cyclical, having ups and downs over short or long periods of time. And the trend that is currently being seen is similar to that of August 2020, when BTC began its rally after falling due to the COVID-19 pandemic. This ended, more than a year later. With the sacred number of 68,000 dollars.
So far in the last month, BTC has grown by 12.95%, leading the most important cryptocurrencies in the markettaking into account that Cardano (-7.71), Dogecoin (-13.46%) and Polygon (-19.38), in the same period, have had numbers in the red.
Analyst Best Owie noted that “At times when the index has entered greed territory, there have typically been bullish price trends due to rising positive market sentiment. Given this, there is a possibility that Bitcoin will break the $30,000 resistance.”, he highlighted.
Ethereum, for its part, seems to be waiting for the alt season, while making small steps in the past few weeks. In the last month period, Vitalik Buterin’s creation increased by 5.98%. Its maximum stands at 1,840, far from the historical peak of 2021 (4.89).
Crypto Fear & Greed Index marks a trend and for the moment the market responds in the same way. Will the correction finally come and continue on its way as it has been for the last few days?
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