Markets
What’s Next for BTC as Cryptocurrency Fear and Greed Index Falls
Bitcoin price analysis: The price of BTC soared on June 12 after Senator Elizabeth Warren wrote a letter to federal regulators asking them to cut rates. Bitcoin price then cooled after the FOMC press release revealed that rates would remain as they were. BTC price returned to pre-FOMC lows.
Bitcoin price was hovering around $66,736 during European business hours on Friday, down 1.3% in 24 hours and a further decline of 6.1% in 7 days. CoinGecko data.
Bitcoin Price Analysis: Can Bulls Bounce Off This Key Support?
BTC Price The action has been choppy for most of the past 30 days. Nonetheless, the asset continues to trade above the 50-day and 200-day simple moving averages (SMA), indicating some bullish sentiment from the market. Price action currently sits at the 50-day SMA, which coincides with a major support structure around the $66,000 level. This is a strong resistance turned support, tested up to 5 times in the last two months.
This is the last level of defense for the bulls and they can hold on to it, BTC price can rebound and gain $72,500. If the bulls fail to win the fight, Bitcoin Price can find support around $60,000 and $57,000 (200-day SMA).
On a macro scale, the weekly Bitcoin price chart shows an extremely bullish market structure – a bull flag with a possible upside potential of 66% if it resolves higher. The Fibonacci retracement tool shows that price action reached the 0.5 retracement level in April when Bitcoin price fell to a low of $56,500.
Bitcoin Fundamentals Fuel Market Greed
Data from Alternative, a market sentiment analysis company, shows that the market is hungry for Bitcoin investments. This means that investors are still rushing to buy more Bitcoin and believe that there could be more upside for the king of cryptos.
Despite the price lag, Bitcoin’s fundamentals have never been stronger, which may have fueled the market’s sense of greed.
Meanwhile, data from Santiment, an on-chain analytics company, shows that Bitcoin supply on exchanges has fallen below 940,000, the lowest recorded since 2021. This indicates that investors are optimistic about the asset and are in no rush to sell it at any time. Soon.
MicroStrategy also began raising $500 million via senior convertible bonds to purchase more Bitcoin. With over 214,000 BTC already in its possession, it remains the largest public company holding Bitcoin in the world.
Conclusion
The impact of financial regulators on crypto markets has diminished over time, and as we saw on Wednesday, it is at an all-time low, especially for Bitcoin. The good news associated with economic interest rates only led to an increase of 4.5%. This may indicate that crypto is decoupling from political and traditional regulations.
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