After bitcoin dropped to an all-time low price of $17600, the crypto market sentiment took a hit. This caused investor sentiment to plummet to new annual lows. However, slowly the market sentiment recovered and began to move out of extremist fear territory. That was until the moment when another market rally has led to a huge uptrend in market sentiment.
Sentiment turns green
Since July’s market recovery, the crypto market sentiment is on an upward trend. The market sentiment quickly moved from extreme fear to the positive when bitcoin’s price hit $24,000.
Despite the recovery in the market, the market sentiment was still mainly in the red, and the score on the Fear & Greed Index remained low. The Wednesday market rebound saw the biggest jumps in 2022. The score was trending at 31 for the majority of Wednesday. However, it had experienced a dramatic upward shift to 41.
The market sentiment is now at its most greedy since the crash. This is also in sharp contrast with the last week’s score and the total score for July which placed the market at 16 deep in extreme fear.
Investors are returning to the cryptocurrency market as a result of this reversal. These times are when most accumulation trends start and get strengthened, and this has led to an uptick in crypto prices around the world.
BTC recovered above $24,000 Source: BTCUSD at TradingView.com| Source: BTCUSD on TradingView.com
Bitcoin wants $25,000
Bitcoin’s recovery has been leading it towards one of the most coveted positions in the current market. This technical level is important because it represents a high-support position that turned into a strong resistance point. This is why it’s important to beat this level for Bitcoin bulls moving forward.
The bitcoin price had been dangerously close in recent times to $25,000 but was beaten back by the resistance at the bottom. As the bulls continued their regroupment, this resulted in a 200-point retracement.
Bitcoin’s 4-hour chart still shows incredible strength, suggesting that another test would take place of $25,000 This retest should see bitcoin surpass $25,000. However, holding the position can be a different story.
Bitcoin’s trend price is currently at $24,500, at the time this article was written. At the moment, the price of Bitcoin is at $24,500. It has gained 6.29% during the last 24 hour and remained unchanged for the two previous daily closes. The Thursday green close will indicate a $28,000 top-off.
Featured Image from Unsplash. Chart by TradingView.com
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