Over the weekend, Bitcoin has held steady. Although the cryptocurrency was able to surpass $24,000 last week, it had fallen back not too long afterwards. The sentiment about the cryptocurrency has not been affected by this retracement. Market sentiment was extremely high as bitcoin started to climb once again.
Bitcoin goes for $24,000
Bitcoin was trading at $24,000 on Monday morning, the opening of the new week. The rally that occurred over six hours quickly saw bitcoin gain more than $500. The bitcoin price rose by more than $500 in just 6 hours, which helped the currency regain its coveted position and put it above its 50-day average.
The 50-day MA is an important technical level in bitcoin. This was just one indicator of the two-month long market crash and bear market trend. It has turned the bearish indicators from bullish, as the digital asset now has the advantage of beating this point. This has led to a reverse of market selling pressure. As buy pressure increases, bitcoin’s value is likely to rise.
Recent recovery has effectively raised bitcoin’s support. This recent movement shows significant support for bitcoin at $23,500. It served as a rebound point. Bitcoin resistance now stands at $24,500. This is a level bitcoin has not been able to surpass since the crash.
BTC Price Exceeds $24,000 Source: BTCUSD at TradingView.com| Source: BTCUSD on TradingView.com
The Sentiment is Positive
Although crypto market sentiment is not the most positive in recent months there has been some impressive recovery. In June’s market crash, investors didn’t make meaningful decisions because sentiment plunged into extreme fear.
The market sentiment is beginning to shift with bitcoin’s price rise. It had grown into the fear territory and is currently sitting at a score of 30 on the Fear & Greed Index. It is a sign of steady market sentiment, which has begun to shift more towards the positive.
More investors have benefited from the renewed confidence in the markets. The last week’s exchange outflows show investors have begun to collect the cryptocurrency, particularly among small investors. On Monday, the total number of addresses with at least one Bitcoin reached an all-time record of 892 803.
To move out of fear territory, market sentiment has some way to go. But, bitcoin will be able to break through $25,000 and turn the tide bullish.
Featured Image from Coindesk. Chart from TradingView.com
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