Fear & Greed Index hits lowest since March 2020 even as Bitcoin price hits $30.5K

2 years ago

Bitcoin (BTC) returned to $30,500 connected May 17 amid hopes that a retest of 2017 highs could beryllium avoided.

$20,000 retest 'highly unlikely'

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD climbing aft the regular adjacent to tentatively physique connected $30,000.

Still, successful a multi-day range, the brace was yet to determine connected a meaningful upward oregon downward trajectory, portion volatility ebbed into the caller week.

Amid concerns that a major retracement could instrumentality it beneath past week’s ten-month lows, fashionable expert Credible Crypto offered a much optimistic alternative. Based connected humanities norms, helium argued connected Twitter, Bitcoin had small impetus to retest $20,000 oregon lower.

“The statement for 13K-14K $BTC connected the premise that past large carnivore markets person led to 80% declines from the apical makes a large assumption- that 65k was the rhythm top,” helium wrote.

“It’s the aforesaid presumption radical made astatine 30k successful June ‘21 earlier we rallied to a caller ATH of 65K 3 months later.”

As Cointelegraph reported, contingency plans look to beryllium successful place already for specified an event, with MicroStrategy — the institution with the largest firm BTC treasury — adjacent prepared to bargain up proviso to stem the fall.

Asked whether BTC/USD could repetition the retracement from its 2019 highs adjacent $14,000 to the $3,600 level during the March 2020 COVID-19 crash, Credible Crypto was conscionable arsenic skeptical.

“Not expecting that. Is it possible? Yes, but arsenic I’ve said antecedently a retest of anterior rhythm highs has ne'er happened before- truthful I find it highly unlikely,” helium responded.

For Cointelegraph contributor Michaël van de Poppe, it was a question of the U.S. dollar cooling its bull tally versus different fiat currencies successful bid to springiness hazard assets immoderate breathing space.

The U.S. dollar scale (DXY), helium forecast, should travel down from its twenty-year highs of 105 points.

"If I look astatine the existent authorities of the $DXY, I deliberation we'll travel done with this scenario. Assuming we'll beryllium seeing immoderate corrective move, the highs person been swept for liquidity. Losing 103.7 points and I deliberation we'll get much downwards unit present -> risk-on assets up," helium tweeted connected May 16.

Sentiment echoes March 2020 aftermath

Market sentiment information meantime reflected the bulk statement crossed crypto — that thing could present happen, with bias firmly skewed to the downside.

The Crypto Fear & Greed Index, a cross-market sentiment gauge, deed 8/100 connected May 17, its lowest worth since March 28, 2020 — 2 weeks aft the Coronavirus lockdown-induced meltdown.

Then, arsenic now, BTC/USD was already recovering from its lows. At $30,500, the brace was up 28% from the week prior.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

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