Since yesterday, Monday the 19th, Bitcoin has started to recover some colors i Reach $22,000 in response to the Fear & Greed index returning to the fear zone. A potential return of over $25,000 for BTC is now possible.
Rise in Bitcoin
It has been like that since Monday that Bitcoin increase 7.95% starting its day at $20,751 and ending at $22,447, the first day in more than ten days. Thus BTC broke through the first major resistance level (R1) at $21,385 and then the second major resistance level (R2) at $21,971. There was a slight pullback during the day to around $21,400 before breaking through the R1 and R2 levels again to end the day at $22,447.
This rise just happened on the good news in the crypto sector which convinced investors to regain confidence in the asset and therefore invest in the market again.
So, a date was finally set for Ethereum merger from this weekend, which generated positive sentiment throughout the crypto market. In addition, reports from SEC (Securities and Exchange Commission) Chairman Gary Gensler have provided another dimension regarding potential regulatory changes to come in the environment to support this rise in BTC.
It must be said that discussion about the regulation of the cryptocurrency industry is a thorny topic that generates a lot of skepticism among investors. Therefore, if the regulations were to emerge in a positive and beneficial framework for cryptos, that would certainly bring the market towards its a significant increase.
We were wondering last week what consequences the euro / dollar parity could have for Bitcoin and at the moment there doesn’t seem to be any no negative impact in the crypto market.
BTC leaves a great fear zone
Today the Fear & Sin Index from 20/100 to 30/100 takes us from the extreme zone to the fear zone. Thanks to investor sentiment and BTC’s rise above $22,000, the index was able to climb a bit towards a more positive threshold. This is the first time since April 10 that the index has reached such a level. At that time BTC was at 34/100 at $42,111.
So the next level is to put this Fear & Greed index in the neutral zone which can be found from 46/100. The index was at 45/100 on April 6 when bitcoin was worth $45,000. Currently, as of this writing, Bitcoin is worth $22,238.
A short analysis
To hope to return above $23,000, Bitcoin would be needed bullish day in the market to test the major resistance R2 at $23,976 knowing that the third major resistance R3 is at $25,962.
If a fall towards the pivot, This could lead to the first S1 support level at $21,222. Technically, if there is no long selling on the day, Bitcoin should not go below $21,000, so it would not be in danger of hitting the second S2 support at $19,995.
If we analyze past trends, resistance to $25,000 the first test to confirm is probably if the uptrend will resume for BTC. Conversely, if BTC were to fall back into the $17,000-18,000 range, it would once again test investors’ resistance to holding on to their assets. So we will have to be patient over the days depending on the market.
Will Bitcoin fall again? Or is he finally in charge new record in the coming years, for example the CEO of Binance, Changpeng Zhao or Mike McGlone, senior strategist at Bloomberg?