Bitcoin is at $42,000 locally, markets are still ‘scared’
Bitcoin continued to hold prices above $41,000 over the weekend after a late Friday surge sent the largest cryptocurrency to a two-week high.
Bitcoin/USD chart 4 hours | Source: TradingView
Data from TradingView shows that Bitcoin still maintains its new floor hit thanks to correlation with the stock market on Saturday.
Previously, analysts flagged the $39,600 area as a key line to cross and move to new support to lock in more gains. However, this is not a problem for the bulls as Bitcoin has “jumped through” for a few seconds and is approaching $40,000 and continues to move higher.
With renewed strength, it’s easy to see market sentiment becoming more buoyant than it has been for the past few days or even weeks.
Prominent analyst Credible Crypto compared the current action to Q4/2020, in which Bitcoin challenged $12,000 before breaking a 3-year all-time high.
Strong movements to the upside, shallow pullbacks, continuation are characteristic of a 1-2, 1-2 or start of a new impulse. The first chart ranges from 11-12k ahead of our breakout and runs to 60k. The second chart is here now and what I expect to further confirm that our big 5th has begun. $BTC pic.twitter.com/gDvt4hsQoq
– Credible Crypto (@CredibleCrypto) February 5, 2022
“Highlighted to move from 1-2, 1-2 or the beginning of a new impulse Go up strong shallow pullback and Continue increase. The first graphic is from $11-12k before breakout and run arrive $60,000. The second chart is current. WOMENwhat i expected being more confirmation main shaft Thursday fit Begin”.
“The only good bear is dead,” trader and analyst Pentoshi empty as the market continued to climb to a local high of $42,000.
Others are less convinced of the sustainability of the current move, as data shows volume selling will kick in if the $40,000 level resurfaces.
— Materials Scientist (@Mtrl_Scientist) February 4, 2022
“Community to cheer Move break $40,000, but orders of $100,000 or more are still selling on the layer This”.
There are many signs that it’s time to turn bullish, not the least of which is the Relative Strength Index (RSI), which broke a two-month downtrend in late January.
“Price is likely at historically oversold levels relative to on-chain demand/supply and futures traders have paused selling,” according to statistician Willy Woo comment when comparing similar RSI breakouts.
Source: Willy Woo
Fearful obsessed hodler
Psychologically, the typical caution after the market’s plunge from the $69,000 top in November is still in place.
According to the Crypto Fear & Greed Index, even after the price surge, “fear” remains the overwhelming emotion among market participants.
The index uses a number of factors to generate a nominal emotion score ranging from 0-100. It currently sits at 33, up slightly after spending most of January below 25 – the extreme anxiety zone.
However, the index was last at this level almost six weeks ago shortly after Christmas.
Cryptocurrency Fear & Greed Index | Source: alternative.me
Join CoinCu Telegram to keep track of news: https://t.me/coincunews