Investors are “in extreme fear” while Bitcoin’s technical indicators point to uncertainty
After hitting a low of $ 29,300 on July 20, 2021, Bitcoin is currently back above $ 32,000. Despite the recovery, there is a lot of uncertainty in the crypto space about short-term price predictions.
Bitcoin price chart | Source: Tradingview
Some are certain that Bitcoin can drop back into the $ 20,000 range, while others believe it will soon recover and soar much higher than the all-time high of $ 64,000 on the next course.
Most traders believe this recovery is possible and claim that Bitcoin price movement today is similar to what it was in 2013. At the time, Bitcoin fell to $ 50 after rising above $ 200 in mid-May 2013.
Bitcoin price then rebounded nearly 2,400% from its 2013 summer low and rose to its then all-time high of $ 1,200.
After Bitcoin fell to $ 29,300 on Tuesday, the Crypto Fear and Greed Index (CFGI) hit a low of 10. The last time the CFGI index recorded a 10 in mid-month, June and late May was over a CFGI Year no longer as low as the previous 10-point hit during the market’s “Black Thursday” event on March 12, 2020.
Crypto Fear and Greed Index July 21, 2021 | Source: alternative.me
Although market sentiment is on “extreme fear”, traders believe this is one of the great opportunities to enter the market. A market full of panic sellers and “extreme fear” will inevitably produce cheaper assets than “extreme greed”. In essence, CFGI analyzes “emotions and feelings from different sources and summarizes them into a single number”.
Technical indicators tell the same story
Technical indicators on Bitcoin’s Tradingview tell a similar story, although some indicators may offer a different perspective. Tradingview’s one-day summary of Bitcoin indicators shows a scaling towards a “sales range”.
Technical indicators for the Bitcoin trading view on July 21, 2021.
Various moving averages (MAs) and Tradingview MA technical indicators indicate a “sold” area. Bitcoin oscillators are a bit better and indicate a “neutral” area.
For example, the relative strength index (RSI 14) is “neutral” and the stochastics (14, 3, 3) show the same results.
Technical indicators on Bitcoin Tradingview, namely Oscillators and MA on July 21, 2021.
All MAs recommend “sell” while the simple moving averages (SMA 10) and exponential moving averages (EMA 10) are in the “buy” range. For Bitcoin oscillators, the only signal to “buy” is the momentum indicator, but the MACD, a trend that follows the momentum, was recorded as a “sell” on Wednesday.
$ 30,000 has proven to be reliable support since May
Despite the volatility in the market, Bitcoin continues to hold the support zone. Delta Exchange CEO Pankaj Balani explains:
“Bitcoin has been in decline since the beginning of this month. The volatility has decreased significantly with a lower range. Bitcoin trades within the support zone of $ 29,000 to $ 31,000. $ 30,000 has proven to be a very reliable level of support since May that can lead to a significant spike in volatility. However, Bitcoin will remain in the $ 30,000 to $ 40,000 range until it has a major breakdown. “
According to News.Bitcoin