A bullish sentiment continues to sweep the cryptocurrency market, with assets such as Bitcoin (BTC) maintaining recent gains. The bullish outlook is highlighted by tools such as the crypto Fear & Greed Index, which is recording new highs.
In particular, as of January 30, the index registered a reading of 61, representing greed, the highest level since November 2021 when the crypto market was in a bull run, according to data by Coinglass.
The level of sentiment reading represents a significant spike from 25 recorded in December 2022, when the crypto market was plagued by bearishness.
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Indeed, the new reading reflects a significant shift in the crypto market towards a state of greed as investors express confidence in the future performance of cryptocurrencies.
Implication of Fear & Greed Index
Notably, the Fear & Greed Index is a composite measure of various indicators, including volatility, market momentum, social media activity, and trading volume. Increasing readings suggest that the index is likely moving towards greed, a state associated with many buyers, while lower reading points to fear that has engulfed the market.
The optimism is reflected in the performance of assets such as Bitcoin, which managed to reclaim the $23,000 position after acting as a major resistance barrier.
However, despite the current level of greed, it should be approached with caution, considering the market is still facing uncertainty. For instance, technical indicators suggest that Bitcoin will likely undergo the dreaded one-week death cross for the first time. At the same time, the asset would likely experience a possible bullish golden cross formation in early February.
In the meantime, a machine learning algorithm is painting a possible Bitcoin sustained rallying in the coming weeks. As reported by Finbold, machine learning algorithms at PricePredictions predict that Bitcoin will likely surge to $24,342 on February 28, 2023.
Furthermore, with Bitcoin rallying by almost 40% in 2023, the crypto is still operating in an environment dominated by macroeconomic factors, and any development around the matter will be of interest. In this line, the Federal Reserve meeting set for later this week will give a glimpse of the interest rate hike decision.
The Fed might slow down on its interest rate decision, considering inflation is cooling down.
Bitcoin price analysis
The maiden cryptocurrency is trading at 23,262, having gained by almost 2% in the last week.
Finally, despite bears’ efforts to overpower the bulls, Bitcoin has expressed resilience. At the moment, analysts project that BTC can potentially retest $28,000.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
