Bitcoin (BTC)It was trading above the critical support of $40,000 during European trading hours but seemed to be moving to the downside today as well.
Bitcoin rallied towards the $40,100 level in the early morning hours of Friday after losing 2.9% yesterday.
One of FxPro’s senior financial analysts Alex KuptsikevichIn an email to CoinDesk: “A signal to break the support level will result in Bitcoin price falling below the $38,000 level. The ability to develop a reversion to an offensive mode from these levels to the contrary will reinforce the importance of this moderately bullish streak.”
The “Crypto Fear and Greed Index,” a hugely popular sentiment indicator posted on the Alternative.me website, was at 22 on Friday, indicating “extreme fear” among crypto investors. This level is below last week’s 37 “fear” reading.
The index shows a level between 1 and 100, with 1 indicating the crypto market is in extreme fear (people are selling), while at the other end of the spectrum, 100 indicates the market is in a bearish state. Excessive greed (meaning that people buy).
Analysts think that Bitcoin may see more volatile price action in the coming months.
DailyFX strategist Paul Robinsonrevealed in an email to CoinDesk that Bitcoin sold off hard in Q4 but then had a relatively directionless trading period in the first frame of 2022.
“Price action has been narrowing for the past three months and it could make things even more jarring in the near term. Given the nature of the volatility and the fact that it is Bitcoin, it is quite possible that the volatility will increase further. This increase may occur towards the middle of the year.”
It’s worth noting that these predictions were made even though April was a historically bullish month for Bitcoin and other cryptocurrencies. How do you think the negative weather in the global markets will affect the course of cryptocurrencies? Your opinion is important to us.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.