Bitcoin, the world’s leading cryptocurrency in terms of market capitalization, is currently undergoing a correction phase. This phase is considered the most stressful for Bitcoin since 2021. The cryptocurrency community, however, remains optimistic that this digital asset will soon emerge from this phase and enter a new bull run.
A cryptocurrency trader recently analysed Bitcoin’s current behavioural trends and concluded that the coin has entered a significantly stressful correction phase. This level of stress was last witnessed in 2021 when China imposed a ban on cryptocurrency mining. The trader scrutinized the Fear and Greed Index of Bitcoin and found that the average Bitcoin Fear and Greed Index SMA30D is showing signs of recovery, reaching 40% as indicated by the chart shared in the trader’s tweet. The average SMA30D has the potential to reach maximum greed if it doubles in value.
The Bitcoin Fear and Greed Index is a tool used to predict the market sentiment within the crypto community. Extreme Fear signifies a buying opportunity for traders, while Extreme Greed suggests that a market correction may be imminent. Bitcoin’s current score on the index is 56, indicating a state of greed.
At present, Bitcoin’s price value is hovering around $94,000, with a slight decrease of 0.56% in the last 24 hours. Bitcoin has struggled to surpass a key resistance level of $96,000, an obstacle that has prevented the cryptocurrency from reaching the $100,000 milestone once again.
However, with the recovery in its SMA30D index, Bitcoin’s price value is expected to overcome its next key resistance in the coming days. If this occurs, we could see the coin making significant gains. This forecast is based on current market trends and is not a guarantee, as cryptocurrency markets are highly volatile and can be influenced by a wide range of factors.
In conclusion, while Bitcoin is currently experiencing a stressful correction phase, the indications of a recovery in its SMA30D index and the potential to overcome its next key resistance level provide some optimism for the future. As always, investors and traders are advised to be cautious and make informed decisions when participating in the volatile world of cryptocurrencies.
