Key facts:
Extreme fear continues in the cryptocurrency market, according to the Fear & Greed index.
Despite this, the purchase of BTC and the bullish sentiment grow, promoting a strong rise in price.
The price of bitcoin (BTC) fell back to $38,400 today, after touching $40,300 the day before. A band in which it has been moving for almost two weeks, which produces fear in the market. But rising demand and bullish sentiment from analysts suggests a sharp rise could break out.
After the cryptocurrency hit $48,000 at the end of March, its 2022 high so far, its price fell fueling “extreme” fear in the market that believed the rally marked the end of a correction season. Currently the feeling of fear continues, according to the index of Fear & Greedwhich may determine its value in the coming days.
Market fear can cause the cryptocurrency to fall further if it motivates traders to sell. Or otherwise, would cause bitcoin to rise if traders buy considering its price is cheapa situation that specialists who see that this is already happening opt for.
According to trader Alberto Martin, bitcoin below $40,000 is “too cheap,” so he believes it’s “a good time to buy.” The esteem that BTC will hit $100,000 in 2022. This sentiment bullish (bullish) so do analysts like TechDev, Willy Woo and Crypto Roverwho warn that demand and holding is at all-time highs.
They precisely indicate that the strength of the buyers is not yet evident in the price that shows enough stability. Even despite the multimillion-dollar purchases made by investors who have more than 1,000 BTC, who are known in the industry as “whales” because of the great weight that their movements in the market imply.
Bitcoin price remains fairly stable despite rising demand, analysts say
The price of bitcoin has had a very low volatility during 2022 compared to previous years. A situation that, although it makes traders unable to obtain great returnsattracts institutional investors seeking more stability. This has been explained by Jurrien Timmer, the director of the financial company Fidelity, who has lately classified bitcoin as “boring”, a characteristic that traders who play “safe” like.
Against this background, analyst Crypto Rover said: “If you are getting bored with bitcoin price action, I have good news for you! Massive volatility is coming once we get out of this monthly breakout!” Recalling the mid-2021 market, he indicated that BTC’s bullish sentiment is similarly growing, although it is not evidenced in the price, as validated by TechDev’s analysis reported in CriptoNoticias.
Woo also commented that the current level of BTC purchase resembles that of the end of 2020 when high demand fueled its sharp rise from $10,000 to $60,000. For this reason, they believe that it could soon have a sharp increase in price.
In this way, the current price stability that BTC possesses could break upwards if the buying force exceeds that of supply. Something that would be encouraged if adoption increases, for example, with the regulatory measures that different countries are determining, such as Cuba and Panama, as well as legalization in the Central African Republic.
However, this prediction seems very uncertain even for other analysts, such as Eduardo Gavotti, Tom Dunleavy and even Willy Woo, who warn that the cryptocurrency is acting like stocks. Some assets with which it has been maintaining correlation throughout the year and are susceptible to the global economic context of uncertainty. This is due to the advance of Russia’s war against Ukraine, rising inflation and supply complications. That is why it is advisable to act carefully.