Bitcoin Investors Remain Greedy Despite High Market Volatility – Report
Bitcoin (BTC) investors are showing a high level of optimism despite recent price volatility, with the Fear & Greed Index tracked by Coinstat Explorer indicating strong and upbeat market sentiment. Currently, at 64, the index is very close to the high of the year, suggesting that investors are more greedy than fearful.
The Fear & Greed Index uses a variety of factors, including social media posts and google trendsto assess the bitcoin market climate and assigns a score from 0 to 100. A score above 55 indicates a predominant sense of greed, while a score below 45 indicates fear. Despite recent price fluctuations between $31,000 and $26,600, the index shows that BTC investors remain bullish on the future of the cryptocurrency.
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Bitcoin maintained bullish market sentiment for most of 2023, reaching a peak of 68 this month. This level has not been seen since 18 months ago when Bitcoin reached its all-time high of $69,000. This month, the price of the cryptocurrency peaked at $31,000, its highest point in nearly a year, with greed reaching a level of 68. While bitcoin has dropped as low as $26,600, market sentiment remains high.
Will Bitcoin hit $40,000?
The recent price surge over the past week has resulted in renewed forecasts from analysts and stakeholders alike about the future of the leading coin. While some believe that a major correction is coming, others have a positive view of the market trend.
One of them is a popular market analyst Michael van de Poppe, who believes a correction is healthy for Bitcoin. He predicts that if Bitcoin stays above $25,300, it will continue to rise towards the $40,000-$50,000 levels. Van de Poppe further displayed his thoughts using a chart, showing that this price level has been key in the past, serving as support and resistance zones for Bitcoin’s 2021 and 2022 highs and lows.
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Van de Poppe believes that with Bitcoin appreciating more than 60% so far this year, it could continue to rise above $40,000 in the second half of 2023. He also predicts a reversal to $30,000, its current resistance , which would become its support. .
However, he noted that this scenario hinges on the US Federal Reserve not pivoting or changing monetary policy. For now, the Fed shows no signs of changing its decision to raise interest rates, which could impact the price of the cryptocurrency.
Santino Cripto, a leading market analyst, also shares this perspective. He believes that Bitcoin could reach $40,000 by August. One of the factors cited for this projection is that higher BTC lows indicate an uptrend. According to him, the market correction experienced this week is similar to previous weeks and shows a natural and rational phenomenon during a bull season.
At the time of writing, Bitcoin is up 1% over the past 24 hours and is trading at $29,319 with a 47% market dominance.
Featured image from istock.com, charts from Coinstats, Twitter and Tradingview.