Markets
What’s Next for BTC as Crypto Fear and Greed Index Plummets
Bitcoin Price Analysis: The price of BTC spiked on June 12 after Senator Elizabeth Warren wrote a letter to federal regulators asking them to reduce fees. The price of Bitcoin subsequently cooled after the FOMC press release revealed that rates would remain as they were. BTC price has fallen back to pre-FOMC lows.
The price of Bitcoin hovered around $66,736 during European trading hours on Friday, a drop of 1.3% in 24 hours and a further drop of 6.1% in 7 days a week. CoinGecko data.
Bitcoin Price Analysis: Can Bulls Rebound From This Key Support?
BTC Price the stock has been choppy for most of the last 30 days. However, the asset continues to trend above the 50-day and 200-day simple moving averages (SMA), indicating some bullish market sentiment. Price action is currently at the 50-day SMA, which coincides with a major support structure around the $66,000 level. This is strong resistance turned support, tested up to 5 times in the last two months.
This is the last level of defense for the bulls and if they can keep it, BTC price can bounce and gain $72,500. If the bulls can’t win the fight, Bitcoin Price may find support around $60,000 and $57,000 (200-day SMA).
On the macro scale, Bitcoin’s weekly price chart shows an extremely bullish market structure – a bull flag with a possible 66% upside potential if it resolves to the upside. The Fibonacci retracement tool shows that price action reached the 0.5 retracement level in April when Bitcoin price fell to a low of $56,500.
Bitcoin Fundamentals Fueling Market Greed
Data from Alternative, a market sentiment analysis company, shows that the market is greedy when it comes to investing in Bitcoin. This means that investors are still rushing to buy more Bitcoin and are of the opinion that there could be more upside for the king of cryptocurrencies.
Despite the price lag, Bitcoin’s fundamentals have never been stronger, and this may have fueled the market’s greedy sentiment.
Meanwhile, data from Santiment, an on-chain analytics firm, shows that the supply of Bitcoin on exchanges has fallen below 940,000, the lowest level recorded since 2021. This signals that investors are bullish on the asset and not They are in a hurry to sell at any time. brief.
MicroStrategy also began raising $500 million through convertible senior notes to buy more Bitcoin. With over 214,000 BTC already in its possession, it remains the largest public company holding Bitcoin in the world.
Conclusion
The impact of financial regulators on crypto markets has been decreasing over time and, as witnessed on Wednesday, is at its lowest level, especially for Bitcoin. The good news associated with economic interest rates only resulted in an increase of 4.5%. This could indicate that cryptography is decoupling from political and traditional regulations.
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