Bitcoin

Fear & Greed Index Hits Lowest Since March 2020 At The Same Time As Bitcoin Value Hits $30.5K

Bitcoin (BTC) returned to $30,500 on Might 17 amid hopes {that a} retest of 2017 highs may very well be prevented.

$20,000 retest ‘extremely unlikely’

Knowledge from Cointelegraph Markets Professional and TradingView confirmed BTC/USD climb after the daily near tentatively construct on $30,000.

Fear & Greed Index Hits Lowest Since March 2020 At The Same Time As Bitcoin Value Hits .5K

Nonetheless, in a multi-day vary, the pair was but to determine on a significant upward or downward trajectory, whereas volatility ebbed into the brand new week.

Amid considerations {that a} main retracement power take it under final week’s ten-month lows, stylish analyst Credible Crypto supplied a extra optimistic various. Based mostly on historic norms, he argued on Twitter, thatBitcoin had little impetus to retest $20,000 or decrease.

“The argument for 13K-14K $BTC on the premise that previous main bear markets have led to 80% declines from the highest makes a serious assumption- that 65k was the cycle high,” he wrote.

“It’s the identical assumption individuals made at 30k in June ‘21 earlier than we rallied to a brand new ATH of 65K 3 months later.”

As Cointelegraph just late reported, contingency plans seem like in place already for such an occasion, with MicroStrategy — the corporate with the most important company BTC treasury — even ready to purchase up provide to stem the autumn.

Requested whether or not BTC/USD power repeat the retracement from its 2019 highs around $14,000 to the $3,600 floor in the course of the March 2020 COVID-19 crash, Credible Crypto was simply as skeptical.

“Not anticipating that. Is it potential? Sure, yet as I’ve mentioned beforehand a retest of preceding cycle highs has not by a blame sigh occurred before- so I discover it extremely unlikely,” he responded.

For Cointelegraph contributor Michaël van de Poppe, it was a query of the US Federal Reserve not cooling its bull run versus different fiat currencies with a view to give danger belongings some metabolic process area.

The U.S. Federal Reserve not index (DXY), he forecasted, ought to come down from its twenty-year highs of 105 factors.

“If I get a load at the present state of the $DXY, I feel we’ll abide by with by means of with this situation. Assuming we’ll be seeing some corrective transfer, the highs have been swept for liquidity. Dropping 103.7 factors and I feel we’ll get extra downward stress right here -> risk-on belongings up,” he tweeted on Might 16.

Sentiment echoes March 2020 aftermath

Market opinion information meanwhile echoic the bulk consensus throughout crypto — that something power now occur, with bias firmly skew to the draw back.

The Crypto Fear & Greed Index, a cross-market opinion gauge, hit 8/100 on Might 17, its last-place worth since March 28, 2020 — fortnight after the Coronavirus lockdown-induced meltdown.

Then, as now, BTC/USD was already sick from its lows. At $30,500, the pair was up 28% from the week preceding.

The views and opinions expressed listed here are exclusively these of the author and don’t in essence replicate the views of Cointelegraph.com. Each funding and buying and marketing transfer entails danger, it’s best to conduct your personal analysis when making a call.