Market Sentiment Shoots Up As Bitcoin Eyes $25,000


The sentiment of the cryptocurrency market was hit when the price of Bitcoin plunged to a new low of $17,600. With this said, investor sentiment fell to new yearly lows. But slowly, the market sentiment recovered and made its way out of the area of ​​intense fear. This is so far when market sentiment registered a massive rally higher from the back of another rally in the market.

Feelings turn green

Crypto market sentiment has been on the upside since the recovery started back in July. When the bitcoin price reached $24,000 for the first time since the market trend, the market sentiment quickly moved outside the area of ​​intense fear.

Despite the recovery in the market, the market sentiment was still mainly in the red, the score on Fear and Greed Index remained low. However, Wednesday’s market recovery saw one of the biggest jumps of 2022. After trending towards 31 on the index for most of Wednesday, the result saw a sharp bullish reversal to 41.

This level puts market sentiment as close to greedy as it has been since the crash. It is also a sharp contrast to last week’s result, as well as the overall result for July, which put the market at 16, in great fear.

The reversal also shows that investors are starting to return to the market. Accumulation trends are usually initiated and strengthened during times like this, which contributes to higher cryptocurrency prices across the space.

Bitcoin price chart from TradingView.com

BTC recovers above $24,000 | Source: BTCUSD on TradingView.com

Bitcoin wants $25,000

Bitcoin’s recovery has propelled it towards one of the most desirable positions in the current market. The $25,000 mark is an important technical level because it was a position where a high support level turned into an important resistance point. As such, beating this level is important for Bitcoin bulls moving forward.

The recent rally actually saw Bitcoin get dangerously close to $25,000, but resistance just below that was enough to defeat the bulls. This saw a bounce of around $200 from this point as the bulls continued to regroup.

Bitcoin is still looking incredibly strong on the 4-hour chart, which indicates that there will be another test of $25,000. The ongoing accumulation trend was enough to provide good support and a bounce point for the digital asset, so this retest is likely to break Bitcoin by $25,000. Although holding the position is another story.

Bitcoin is now trending at $24,500 at the time of writing. At the moment, its price is up 6.29% in the last 24 hours and has remained green during the last daily close. Thursday’s green close will indicate a peak at $28,000.

Featured image from Unsplash, chart from TradingView.com

Follow Best Owie on Twitter For market insights, updates, and sometimes funny tweets…





Leave a Comment

Your email address will not be published.