Bitcoin Fear & Greed Index Reaches 31, Is The Market About To Recover Or More Pain To Come?
- Bitcoin is still volatile, with the bears prevailing in the market and traders feeling fear despite exercising caution.
- The Bitcoin Fear and Greed Index is at 31 and has been sustained by investor anxiety since February despite the BTC price still holding important support levels.
- Despite the market downtrend, clustered liquidation levels could allow a short-term Bitcoin price spike to $89,500.
Bitcoin is currently trading at $85,539.92, but there are chances of the market experiencing significant ups and downs throughout the next 22 hours. With this volatility, BTCs price trajectory might be quite uncertain over the rest of the week or might even drop.
This expected volatility is partly based on the current instability in the bond market, which also impacts stock prices. Since the crypto market tends to behave in a similar manner to the stock market, it affects the crypto market as well.
Also, at the moment, the Crypto Fear and Greed Index is at 31, indicating that fear is prevailing among investors. The factors that make up this index include trading activity, online discussion about crypto, search engine trends, as well as Bitcoins dominance in relation to other cryptocurrencies.
Data reveals that this fearful sentiment has failed to drop despite a rise in the value of Bitcoin above a pivotal support level of $82,500.
Fear & Greed Index. Source: Alternative.me
Bitcoin Rainbow Chart Suggests Opportunity with Caution
Currently, the rainbow chart, a colorful investment tool that shows BTCs long-term trends, says it could be a good time for long-term investors to buy BTC, with the notion that the coin is still inexpensive.
Past market cycles have found Bitcoins highest zone, labeled Sell, seriously SELL!, coinciding with Bitcoin price peaks. Now, the chart suggests that if around late 2025 there is a similar pattern, BTC might touch $250,000.
Rainbow Chart. Source: Blockchain Center
Bitcoin Eyes $89.5K Amid Market Caution
As BTCs price continues to dwindle, fear remains the rule of the day, with many traders and investors across the landscape playing it safe. Despite BTC holding above important support levels, it hasnt been enough to increase their confidence.
However, this is interesting based on the fact that liquidation levels are beginning to cluster up around the $89,500 price zone, according to Coinglass data. When large amounts of liquidations begin to accumulate at certain price levels, they can act as a potential target for any asset.
BTC could spike towards the $89,500 level if theres a sudden burst of trading activity. This makes it an important level for traders to keep an eye on.
Read more: https://www.tronweekly.com/bitcoin-fear-greed-index-reaches-31/
Text source: TronWeekly
