Bitcoin (BTC) investors are showing a high level of optimism despite the recent price volatility, with the Fear & Greed Index tracked by Coinstats Explorer indicating a strong and bullish market sentiment. Currently, at a level of 64, the index is very close to the year’s high, suggesting that investors are more greedy than fearful.
The Fear & Greed Index uses a variety of factors, including social media posts and Google Trends, to gauge the mood of the bitcoin market and assigns a score from 0 to 100. A score above 55 indicates a prevailing sense of greed, while a score below 45 indicates fear. Despite recent price fluctuations between USD 31,000 and USD 26,600, the index shows that BTC investors remain optimistic about the future of the cryptocurrency.
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Bitcoin has sustained a bullish market sentiment for most of 2023, reaching a peak of 68 this month. This level has not been observed since 18 months ago, when Bitcoin reached its all-time high of $69,000. This month, the cryptocurrency’s price peaked at $31,000, its highest point in nearly a year, with greed reaching a level of 68. Although bitcoin later fell to $26,600, market sentiment remains elevated.
Will Bitcoin Hit $40,000?
The recent price surge in the past week has resulted in renewed predictions from analysts and stakeholders about the future of the leading coin. While some believe a major correction is coming, others have a positive view of the market trend.
One of these is popular market analyst Michael van de Poppe, who believes a correction is healthy for Bitcoin. He predicts that if Bitcoin remains above $25,300, it will continue to rally toward the $40,000 to $50,000 levels. Van de Poppe further displayed his thoughts using a chart, showing that this price level had been key in the past, serving as a support and resistance zone for Bitcoin minimums and maximums in 2021 and 2022.
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Van de Poppe believes that with Bitcoin’s appreciation of over 60% so far this year, it could continue to rise to more than $40,000 in the second half of 2023. He also foresees a reversal to $30,000, its current resistance, which would become its support.
However, he noted that this scenario depends on the US Federal Reserve not pivoting or changing monetary policy. For now, the Fed does not show any indication of changing its decision to raise interest rates, which could impact the cryptocurrency’s price.
Santino Cripto, a prominent market analyst, also shares this outlook. He believes that Bitcoin could reach $40,000 by August. One of the factors cited for this projection is that BTC’s higher minimum prices indicate an uptrend. According to him, the market correction experienced this week is similar to previous weeks and shows a natural and rational phenomenon during a bullish season.
As of the time of writing, Bitcoin is up 1% in the last 24 hours and trading for $29,319 with a market dominance of 47%.
Featured Image from istock.com, charts from Coinstats, Twitter, and Tradingview.