BTC found new bullishness today to break a 12-week decline. The crypto fear & greed index hit 48 today, making it the highest in 12 weeks and signifying a major shift in the crypto market. The crypto market cap is back at the $2 Tr levels following a month of intensive selling pressure by the bears.
Analyzing The Index In The Last Three Months
The leading cryptocurrency retested the $45K psychological level but was rejected. This index measures the market bias towards BTC based on factors, especially social media activity and volatility. On Tuesday, this index increased to 48 following 12 weeks in the extreme fear or fear region.
Bitcoin Fear and Greed Index is 48. Neutral
Current price: $43,778 pic.twitter.com/rHb3kk4Fil
— Bitcoin Fear and Greed Index (@BitcoinFear) February 8, 2022
This index rose to 45 on December 23rd, with BTC price surging towards the $51K levels before several declines. After the decline, the index fluctuated between ‘fear’ and ‘extreme fear.’ even though the market sentiment has reversed to bullishness, a bear trend is still possible. After BTC was rejected at the $45K level, there was intense selling pressure of the leading cryptocurrency.
However, the low average funding rates showed that many traders were taking precautions to prevent experiencing huge losses over the short term. Another consequence of the bullish run is the low volatility of the bitcoin options market.
Relationship Between The Crypto Market And Tech Stock Performance Still Exists – QCP Capital
A recent QCP capital twitter thread revealed that the crypto market has remained bullish, which is in contrast to the bearishness of the crypto market. But the firm remarked that the instance doesn’t mean that there is no longer a relationship between Nasdaq and the crypto market. What has happened demonstrates the increasing demand for crypto assets during this period. The firm further noted that the bullishness isn’t over yet.
Concluding the tweet, the firm stated that “this bullishness will likely continue because there are no important mini-events within the next nine days that can affect the crypto market. The outcome of the Fed meeting next week Thursday is the next mini-event that can have a huge impact on the crypto market.” As of this writing, BTC trades at $43K following a slight price correction from the $45.5K price during the morning trade session.
Other Reasons For The Positive Momentum
Aside from the positive market sentiment, two other factors have positively impacted the crypto market in the last couple of days. On Monday, KPMG revealed that it would start holding BTC and ETH as part of its balance sheet. Also, Nasdaq listed Valkyrie’s BTC mining ETF on the exchange on February 8th.
Furthermore, the trader returns for BTC and ETH were the most positive in the last four months, according to Santiment data. This positivity also contributed to the bullish returns on the crypto market. Regardless, the RSI index on the daily timeframe showed that BTC is still within the oversold region, and BTC may remain bullish in the near term.
📈 Both #Bitcoin and #Ethereum are thriving once again. $BTC is up to $44.4k for the first time since in over a month, and $ETH is back above $3,180 for the first time in 2.5 weeks. Trader returns on each network are at their most positive since October. https://t.co/aSljb0wdyG pic.twitter.com/R2jBNSrcTx
— Santiment (@santimentfeed) February 7, 2022