‘Extreme fear’ grips Bitcoin price, but analysts point to signs of a potential reversal

The cryptocurrency market settled right into a holding sample on Might 25 after merchants opted to sit down on the sidelines forward of the noon Federal Open Market Committee (FOMC) assembly the place the Federal Reserve signaled that it intends to proceed on its path of elevating rates of interest. Based on knowledge from Different.me, the Concern and Greed Index seeing its longest run of utmost concern for the reason that market crash in Mach 2020.

‘Extreme Fear’ Grips Bitcoin Price, But Analysts Point To Signs Of A Potential Reversal

Concern & Greed Index. Supply: Different

‘Extreme Fear’ Grips Bitcoin Price, But Analysts Point To Signs Of A Potential Reversal

Knowledge from Cointelegraph Markets Professional and TradingView reveals that the worth motion for Bitcoin (BTC) has continued to compress into an more and more slim buying and selling vary, however technical evaluation indicators aren’t offering a lot perception on what route a potential breakout might take.

‘Extreme Fear’ Grips Bitcoin Price, But Analysts Point To Signs Of A Potential Reversal

BTC/USDT 1-day chart. Supply: TradingView

‘Extreme Fear’ Grips Bitcoin Price, But Analysts Point To Signs Of A Potential Reversal

Right here’s a have a look at what analysts assume might come subsequent for Bitcoin worth.

‘Extreme Fear’ Grips Bitcoin Price, But Analysts Point To Signs Of A Potential Reversal

Whales accumulate as Bitcoin battles to reclaim $30,000

BTC/USDT 15-minute chart. Supply: Twitter

‘Extreme Fear’ Grips Bitcoin Price, But Analysts Point To Signs Of A Potential Reversal

Based on market analyst Michaël van de Poppe, “#Bitcoin broke by way of $29.4K and ran in the direction of the following resistance zone. If we maintain $29.4K, we’ll be good in the direction of $32.8K. Lastly.”

‘Extreme Fear’ Grips Bitcoin Price, But Analysts Point To Signs Of A Potential Reversal

One attention-grabbing factor to notice at these worth ranges is that whereas the predominant sentiment is that of utmost concern, on-chain intelligence agency Santiment identified that whale wallets have taken this as a possibility to build up some well-priced BTC.

Bitcoin worth vs. provide distribution. Supply: Santiment

Santiment stated,

“As #Bitcoin continues treading water at $29.6K, the quantity of key whale addresses (holding 100 to 1k $BTC) continues rising after the large dumping from late January. We have traditionally seen a correlation between worth & this tier’s deal with amount.”

Worth might nonetheless pull again to $22,500

A perspective on how Bitcoin performs following the looks of a demise cross was supplied by pseudonymous Twitter person Rekt Capital, who posted the next chart outlining what to anticipate if the “historic worth tendencies referring to the #BTC Demise Cross repeat […]”

BTC/USD 1-week chart. Supply: Twitter

Rekt Capital stated,

“$BTC will breakdown from the Vary Low help & proceed its drop to finish -43% draw back. The -43% mark is confluent with the 200-Week MA at ~$22500.”

Associated: Scott Minerd says Bitcoin worth will drop to $8K, however technical evaluation says in any other case

“A pivotal retest”

The significance of the present worth degree for Bitcoin was touched upon by economist Caleb Franzen, who posted the next chart wanting on the long-term efficiency of BTC versus its weekly anchored volume-weighted common worth (AVWAP) noting that “This can be a pivotal retest, much like the dynamics in 2022.”

BTC/USD vs AVWAP 1-week chart. Supply: Twitter

Franzen stated,

“A rebound on the weekly AVWAP from the COVID low might enhance bullish chances. A breakdown under it will drastically enhance bearish chances, foreshadowing a retest of the gray vary, $13.8k-19.8k.”

The general cryptocurrency market cap now stands at $1.265 trillion and Bitcoin’s dominance fee is 44.8%.

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, it’s best to conduct your individual analysis when making a call.



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