BIT­COIN PIC­TURE OF GOOD HEALTH BUT GREEDY FOR MORE

AMBCrypto Weekly - - Front Page -

“If you thought Bit­coin-in­vestors were greedy, you haven’t seen Bit­coin.

In Jan­uary alone, Bit­coin, the big­gest cryp­tocur­rency in the mar­ket rose by over 30 per­cent. This mas­sive rise, in what will be a big year for the dig­i­tal as­set, with the much-an­tic­i­pated halv­ing sched­uled for May, could be a sign of things to come.

Ac­cord­ing to a re­cent re­port by Ar­cane Re­search, Bit­coin af­ter bal­anc­ing the scales moved to the Greed side of the dreaded Fear and Greed In­dex. A move to the lat­ter, in mar­ket terms, is a bullish sig­nal, with par­tic­i­pants ex­pect­ing a move up­wards.

Record­ing a value of 57, not too much into the greed zone, but good enough for in­vestors. What’s even more no­table about this move­ment is that this is the in­dex’s high­est value since Au­gust 2019.

The re­port noted that since De­cem­ber, the sen­ti­ment has been “push­ing up­wards” and with the price con­sol­i­dat­ing above $9,000, it’s now back to “lev­els we haven’t seen since Au­gust.” It should be noted that the last time Bit­coin was at this level on the in­dex, a “sharp” run was seen from $9,500 to $12,000.

Over six months ago, as Bit­coin was trad­ing over $10,000, the in­dex notched a value of over 60. Prior to this, the in­dex was over 90 as Bit­coin saw one of the best quar­ters in Q2 2019, reach­ing a high of $13,800. How­ever, since then the price and the Fear and Greed in­dex has been on a sharp de­cline.

To add to this run, the price is not show­ing some brief pump, but an or­ganic move­ment. Ac­cord­ing to the 7-day av­er­age real trad­ing vol­ume of Bit­coin, based on the Bit­wise 10, the re­port de­fines the mar­ket as “health­ier.” Ev­i­denc­ing this claim by stat­ing tha spite the vol­ume drop­ping in the past week,

“It [trad­ing vol­ume] bot­tomed out at a higher level than a month ago, and it looks like the vol­ume is now slowly trend­ing up­wards again.”

Fur­ther, the vol­ume cou­pled with ris­ing volatil­ity shows “healthy price growth.” The 30-day BTC volatil­ity was “trend­ing up­wards,” ow­ing to Bit­coin’s mas­sive gains in the month.

All in all, with the F&G show­ing bullish signs and the vol­ume-volatil­ity in­di­cat­ing a healthy mar­ket, Bit­coin could be in for a big year.

Source: Un­splash.com

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.