For crypto traders to change their minds, it only took a small drop in the price of Bitcoin — just $3,500 off the market cap.
On February 12, Bitcoin (BTC) was trending toward a retest of the $40,000 mark, as the price movement of the cryptocurrency confirmed analysts’ projections.
The Trader Is Hoping to Avoid an “Ugly” Weekly Close.
Cointelegraph Markets Pro and TradingView data showed that Bitcoin/USD reached a low of $41,741 on Bitstamp on Saturday before rebounding to more than $42,000 the following day.
After the release of the CPI data from the United States, the pair saw a reversal, prompting demands for a return below $40,000 or even lower to test how iron bulls’ resolve truly was, according to some.
In the opinion of Cointelegraph contributor Michal van de Poppe, the results were still inconclusive, although caution should be exercised in the future while trading on short time frames in general.
“Bitcoin is still aiming at the same resistance,” he explained alongside a graphic depicting probable support and resistance objectives for the cryptocurrency market.
Others, on the other hand, have called time on the possible breadth of Bitcoin’s longer-term downfall in value. “May the crypto gods be with you because the odds are not in your favor,” famous Twitter analyst Credible Crypto warned those hoping for a Bitcoin price of less than $30,000.
Even at its present price, Bitcoin’s weekly closing was expected to be nearly comparable to the previous week’s, keeping the vast bulk of the gains that had propelled the cryptocurrency out of the $30,000 zone.
We’re Right Back Where We Started: “Fear.”
This week’s late fall was more than convincing enough to cause the cryptocurrency market’s mood to take a new hit.
According to the Crypto Fear & Greed Index, three days in the “neutral” zone was sufficient time for “fear” to retake the lead as the primary driving force behind the trading activity.
On Saturday, the Index was 44/100, down from its previous high of 54/100 on Wednesday.
Trading suite members talked about January’s weeks-long plunge into the lowest “extreme terror” zone. According to Decentrader, historical trends indicated that a sentiment reset had most likely already occurred.
Based on the current data what degree of Mayer Multiple oversold levels would have to be reached in order for us to hit some of these 🐻 targets? #Crypto
Daily closes over the last 10 years. #Bitcoin
35/3500 | 1%
12/3500 | 0.3% pic.twitter.com/ucFtx0nLpM
— Plan©️ (@TheRealPlanC) February 12, 2022
“Such prolonged bouts of acute panic are indicative of the possibility that general market participants would be caught off guard. We’ve seen this play out with the rapid rise in the value of bitcoin ($BTC) over the past two weeks “In a market report published on Friday, analysts expressed their thoughts.
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