Does Sentiment Shifting Slowly Signal A Crypto Recovery Ahead?
July 05 2022 - 12:40PM
NEWSBTC
The crypto market has lost momentum after the extended weekend in
the United States. Bitcoin and other larger cryptocurrencies have
been recording losses during today’s trading session and could
continue to trend downside in the short term. Related Reading
| TA: Ethereum Regains Strength, Showing Early Signs of Fresh
Rally At the time of writing, the crypto total market cap stands at
$860 billion with sideways movement over the past weeks. This
metric has been trending to the downside since late 2021, but took
a severe loss in April-May 2022, as seen in the chart below. As a
consequence, the general sentiment across the crypto market trended
to the downside and recorded extreme fear levels on the Fear and
Greed Index. The price of Bitcoin and other larger cryptocurrencies
often finds a local bottom or top when the Index stands close to 10
or 80 respectively. The crypto market did find a bottom in June
when BTC’s price traded close to $17,000 and pushed the Fear and
Greed Index to extreme levels. Since that time, the number one
cryptocurrency has pushed the market slightly upwards and has been
forming a new range between $18,600 and $21,000. These levels stand
as the major area of resistance along with $22,000. Market
participants seem more positive on a probably break above these
levels, according to a recent report from Arcane Research. The
first stated the following on the shift in market sentiment over
the past weeks: The sentiment in the crypto market has been
depressed for several months, but we’re seeing a slight improvement
this week. After the Fear and Greed Index climbed to 19 yesterday,
we’re at the highest point in two months. While we’re still
comfortable in the “Extreme Fear” area, we’re now pushing towards
the “Fear” area, and the market is slightly more optimistic (…).
Ready For More Crypto Downside? The crypto total market cap and the
performance of the altcoin market are bound to BTC, ETH, and larger
cryptocurrencies. As NewsBTC has been reporting, the sector is
currently impacted by macro-economic factors; rising inflation, and
interests rates hikes by the U.S. Federal Reserve (FED). These
factors’ influence over the market must mitigate before the nascent
asset class can decouple from traditional finances. In the
meantime, any bullish momentum will remain susceptible. Related
Reading | Cardano Releases New Update On Testnet, How Will The
Price Respond? If the price of Bitcoin is unable to push above
$22,000 soon, the market could see a decline in the Fear and Greed
Index. Data from Material Indicators and their Trend Precognition
Indicators suggest it is likely to see a re-test of lower levels.
Via Twitter, the analysts wrote: BTCUSDT and ETHUSDT were both
rejected at the 21 Day Moving Average and now we see the Trend
Precognition A1 Slope Line rolling over on the D chart indicating a
short term loss of momentum.
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