Bitcoin and crypto markets have experienced price declines in short time frames. With volatility sudden surges impacting small cryptocurrencies, the first crypto market cap traded within a narrow range.
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Momentum appears to favor bulls, as Ethereum (ETH), Solana(SOL), Terra and LUNA all keep their gains even as Bitcoin hints towards further lows. SOL’s price records a 22% profit which makes it the best performing asset in the crypto top 10.
As of today, the cryptocurrency total market has surpassed the crucial mark of $2 Trillion.
According to Arcane Research’s recent report, the crypto market players are currently at crossroads. Following a dramatic spike in the index’s bottom, Fear and Greed is currently neutral.
Below, you can see that the research firm recorded the metric at 53. This is slightly more than the Greed level. This metric has been affected by the sideways movement of Bitcoin and large cryptocurrency coins.
Market participants have been leaning towards the fearful side since December 2021. There were two instances when Extreme Fear was not present. A price reverse is usually indicated by sudden moves to either extreme.
This is illustrated by the chart below. Long periods of fearfulness can be followed by long periods of greed. Arcane Research suggested that this time market participants felt greedy.
Fear and Greed Index is stable at neutral, with fluctuations around 50 over the course of the week. This suggests that there’s a reasonable balance in market sentiment. For the past ten days, the index has been trailing at 50. This happened the last time. Market sentiment quickly plummeted into fearful territory shortly afterwards.
Material Indicators data supports a bearish thesis. Bitcoin is facing a lot resistance at its current level. With little support, there are more than $30 million worth of asks orders.
These are the Factors that Could Help The Crypto Greedy
The crypto market may continue outperforming the biggest cryptos, but its short-term performance could impact the altcoin markets. There are still positive factors at work, despite the high volume of orders for crypto.
Yuya Hasegawa from Bitbank noted that Bitcoin prices have benefited greatly since the United Kingdom Treasury’s announcement. It appears that the financial institution is warming up to cryptocurrency as it plans on accepting NFT and stablecoins in order to improve its payments system.
The former EU member suggests that digital assets will be treated more favorably by the U.K. If the new European regulation on this asset class turns hostile, as it seems to be, the U.K. could become the region’s alternative to maintain its operations.
In addition, the crypto market seems to be benefiting from a relief in tech stock companies’ prices. The analyst pointed out that these companies rose after Elon Musk’s acquisition of 10% in Twitter.
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Hasegawa also believes that the Bitcoin Miami Conference can provide some support for the cryptocurrency market in the short term. It will open tomorrow and may feature important announcements similar to last year.