‘Extreme fear’ grips Bitcoin price, but analysts point to signs of a potential reversal

The cryptocurrency market settled right into a holding sample on Could 25 after merchants opted to sit down on the sidelines forward of the noon Federal Open Market Committee (FOMC) assembly the place the Federal Reserve signaled that it intends to proceed on its path of elevating rates of interest. In line with data from Various.me, the Worry and Greed Index seeing its longest run of utmost worry for the reason that market crash in Mach 2020.

Crypto Worry & Greed Index. Supply: Various

Knowledge from Cointelegraph Markets Pro and TradingView reveals that the value motion for Bitcoin (BTC) has continued to compress into an more and more slender buying and selling vary, however technical evaluation indicators aren’t offering a lot perception on what course a potential breakout may take.

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BTC/USDT 1-day chart. Supply: TradingView

Right here’s a take a look at what analysts assume may come subsequent for Bitcoin worth.

Whales accumulate as Bitcoin battles to reclaim $30,000

BTC/USDT 15-minute chart. Supply: Twitter

According to market analyst Michaël van de Poppe, “#Bitcoin broke via $29.4K and ran in direction of the subsequent resistance zone. If we maintain $29.4K, we’ll be good in direction of $32.8K. Lastly.”

One attention-grabbing factor to notice at these worth ranges is that whereas the predominant sentiment is that of utmost worry, on-chain intelligence agency Santiment pointed out that whale wallets have taken this as a chance to build up some well-priced BTC.

Bitcoin worth vs. provide distribution. Supply: Santiment

Santiment stated,

“As #Bitcoin continues treading water at $29.6K, the quantity of key whale addresses (holding 100 to 1k $BTC) continues rising after the large dumping from late January. We have traditionally seen a correlation between worth & this tier’s deal with amount.”

Worth may nonetheless pull again to $22,500

A macro perspective on how Bitcoin performs following the looks of a loss of life cross was supplied by pseudonymous Twitter person Rekt Capital, who posted the next chart outlining what to anticipate if the “historic worth tendencies referring to the #BTC Demise Cross repeat […]”

BTC/USD 1-week chart. Supply: Twitter

Rekt Capital stated,

$BTC will breakdown from the Macro Vary Low help & proceed its drop to finish -43% draw back. The -43% mark is confluent with the 200-Week MA at ~$22500.”

Associated: Scott Minerd says Bitcoin price will drop to $8K, but technical analysis says otherwise

“A pivotal retest”

The significance of the present worth stage for Bitcoin was touched upon by economist Caleb Franzen, who posted the next chart trying on the long-term efficiency of BTC versus its weekly anchored volume-weighted common worth (AVWAP) noting that “It is a pivotal retest, just like the dynamics in March 2022.”

BTC/USD vs AVWAP 1-week chart. Supply: Twitter

Franzen stated,

“A rebound on the weekly AVWAP from the COVID low may improve bullish chances. A breakdown under it could drastically improve bearish chances, foreshadowing a retest of the gray vary, $13.8k-19.8k.”

The general cryptocurrency market cap now stands at $1.265 trillion and Bitcoin’s dominance fee is 44.8%.

The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, it’s best to conduct your personal analysis when making a choice.