Bitcoin stays higher after stocks propel BTC price toward $42K

2 years ago

Bitcoin (BTC) held supra $41,000 into the play aft a precocious surge Friday took the largest cryptocurrency to two-week highs.

"The lone bully carnivore is simply a dormant bear"

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD maintaining recently re-won crushed Saturday, with the pair's correlation to banal makets firmly successful focus.

Analysts had highlighted the $39,600 country arsenic a cardinal enactment to transverse and flip to caller enactment successful bid to unafraid further upside. In the event, this was nary contented for bulls, arsenic Bitcoin "gapped up" successful seconds arsenic it neared $40,000 to proceed higher.

Amid the newfound strength, the temper was conspicuously much buoyant than successful caller days oregon adjacent weeks.

Popular expert Credible Crypto compared existent enactment to Q4 2020, successful which Bitcoin challenged $12,000 anterior to breaking three-year all-time highs.

Characteristic of a 1-2, 1-2 oregon commencement of a caller impulse is beardown moves up, shallow pullbacks, continuation. The archetypal illustration is from 11-12k earlier our breakout and tally to 60k. The 2nd illustration is now, and what I expect to play retired to further corroborate our large 5th has started. $BTC pic.twitter.com/gDvt4hsQoq

— Credible Crypto (@CredibleCrypto) February 5, 2022

"The lone bully carnivore is simply a dormant bear," trader and expert Pentoshi quipped as the marketplace continued rising to spike to section highs of $42,000.

Others were little convinced of the sustainability of the existent move, with information showing sizeable large-volume selling opening arsenic $40,000 reappeared.

CT cheering astir a interruption of 40k, but orders of size $100k+ are inactive selling this rip #BTC pic.twitter.com/IfACqoRBs5

— Material Scientist (@Mtrl_Scientist) February 4, 2022

As Cointelegraph reported, signs had already been circulating that an uptick was due, acknowledgment chiefly to the time-tested comparative spot scale (RSI) breaking a two-month downtrend successful precocious January.

"Probably worthy mentioning terms is astatine historical levels of oversold to on-chain demand/supply, and the futures traders person halted their sell-down," statistician Willy Woo commented portion comparing akin RSI breakouts.

Fear lingers for wary hodlers

Turning to sentiment, the consciousness of caution characterizing the marketplace since November's $69,000 highest remained.

According to the Crypto Fear & Greed Index, "fear" was inactive the overriding emotion among marketplace participants, adjacent aft the terms jump.

The Index, which uses a handbasket of factors to nutrient a nominal sentiment people from 0-100, measured 33 astatine the clip of writing, having spent astir of January beneath 25 — the "extreme fear" zone.

Nonetheless, the past clip that the Index was truthful precocious was astir six weeks ago, conscionable aft Christmas.