The Bitcoin price has long ceased to be interesting. The coin price has been below $18,000 for almost a month and a half. To get an idea of what lies ahead, it is good to look at the market sentiment. In this analysis, we also look at market sentiment in addition to price.
What’s the big picture?
Let’s first take a look at Bitcoin’s weekly chart (each candlestick = one week). There we see the main support and resistance levels as blue zones. This is what Bitcoin price has reacted to the most in the past.
Last week’s candle attempted to recapture the mid blue zone but failed. As a result, the price has dropped to where we are now: $16,800. A meager price compared to last year’s price: $50,000.
It just goes to show that a lot can change in a year. The price struggles to stay interesting, but many still believe that the price will return to its previous highs. Let’s zoom in a bit more to see what the price can do in the coming days. For this we use the daily chart.
Shall we go to $12,000?
The middle blue zone is magnified here because each candle here represents 24 hours. This way we can also better see the bounce from 9 days ago. Unfortunately, it doesn’t bode well if the price can’t climb higher at such a key point, as the number of sellers has taken over the $18,000 key price.
Therefore, if the price fails to make another attempt to climb above USD 18,000, it is expected to continue falling. We are currently in an uncertain time and the most important thing is that the price at least does not reach new lows. I’m talking about a price below $15,500.
That was the price that Bitcoin scored in 2022, if the price does not fall further. A new low could see bitcoin move into the lower blue zone and bring us within sight of the not very positive USD 12,000 price.
fear and greed
Since we haven’t looked at the Bitcoin market picture for a long time, let’s take a well-known chart: the Fear and Greed Index. This is an indicator that shows how much fear and how much greed there is in the market.
It works like this: On the left we see values from 0 to 100. A value of 0 is maximum fear and 100 is maximum greed.
As you can see, this index has been moving sideways for an entire month with no real spikes up or down. Still, the current value of 27 is too low. This means that fear is greater than greed. So you would expect that it is better to get out of the car if you are really scared, but nothing could be further from the truth.
When fear is at its peak, it is usually very close to the bottom of bitcoin. The question is therefore whether selling is such a sensible choice. This is also supported by a famous quote from Warren Buffet, a well-known investor: “Be afraid when others are greedy and be greedy when others are afraid.” It is not a price guarantee, but it paints a different picture than we might imagine. see in the diagrams.
Source: Btc Direct
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Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
