Market Sentiment Holds Steady As Bitcoin Aims For $24,000

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Bitcoin held steady over the weekend. The cryptocurrency was able to beat the $24,000 mark last week but pulled back down not long after. However, this traction did not have too much of a negative impact on the sentiment towards the digital asset. As bitcoin started up again, the market sentiment was incredibly strong.

Bitcoin Goes For $24,000

The opening of the new week saw bitcoin start below $24,000 in the early hours of Monday. This quickly changed with a rally on a 6-hour basis that saw bitcoin add more than $500 to its value. This helped it reclaim this coveted point once again, placing it firmly above its 50-day moving average.

Now, the 50-day MA has always been an important technical level for bitcoin. It was one indication of the crash that rocked the market two months ago and the bear market trend that ensured. As the digital asset has now overcome this point, it has now converted the bearish indicators to bullish ones. It also resulted in a reversal of the selling pressure in the market. Now, as buying pressure increases, the value of bitcoin is expected to rise.

The recent recovery has now adequately moved the support level for bitcoin. The recent move shows that there is now a major support for BTC at $23,500 which acted as a bounce point. Resistance for bitcoin now sits at $24,500, a level that bitcoin has not been able to overcome since the crash.

Bitcoin price chart from TradingView.com

BTC price exceeds $24,000 | Source: BTCUSD on TradingView.com

Sentiment Remains Positive

Crypto market sentiment has not been the best in recent months, but there has been some remarkable recovery during this time. When the market crash happened back in June, sentiment plunged far into extreme fear territory, preventing investors from making any meaningful moves in the market.

However, with the turnaround in the price of bitcoin, the market sentiment began to change. It has grown into the fear territory and currently sits at a score of 30 on the Fear & Greed Index. This shows a constant sentiment in the market that is starting to lean more towards the positive.

With this return of confidence in the market came more investment. Exchange leaks for the past week show that investors are starting to amass the coin, especially among smaller investors, with the number of addresses holding at least 1 BTC reaching a new all-time high of 892,803 on Monday.

The market sentiment still has a long way to go to move completely out of the fear territory. However, if bitcoin is able to make its mark and break through $25,000, sentiment is expected to turn bullish very quickly.

Featured image from Coindesk, chart from TradingView.com

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