Bitcoin seems to have returned above $40,000 on July 28 as the bulls and bears waged a war for the hard-won higher ground. One analyst promised an ‘interesting few days’ ahead as volatility firmly entered the bitcoin market and sentiment transforms.
A Lot Can Happen From Now
Data acquired from TradingView showed BTC/USD reaching $40,200 overnight, sealing a rare eight straight green daily candles in a row. Investors had initially been doubtful of the strength of the first rally that started on July 26, after an abrupt surge past the $40,000 mark followed by a roughly 9% correction.
For the case of Sam Trabucco who is a qualitative cryptocurrency trader at Alameda Research, such behavior was not surprising, taking previous rallies into context. However, the next several days should be tense. He said in several tweets on Wednesday:
“A lot can happen from here — BTC has had a stock beta, so there’s potential for it to remain sorta beholden to that, and there has historically been ‘round number resistance’ may be causing it to struggle to stay>$40k.”
“But $40k is a local max, so there’s also LOTS of potential for shorts put on much lower to get liquidated if we rally even a little more. We’ll see! It should be an interesting next few days, and I’m sure glad I caught up on sleep.”
His projections came in as shorts nevertheless remained low on major exchange Bitfinex. Earlier in the month, sudden increases had noticeably influenced near-term price pressure. In the meantime, examining buy and sell levels on the Binance exchange showed that $38,500 is growing as Bitcoin’s nearest support level, with $41,000 hardening as the next resistance.
Fear And Greed Rise To Highest Levels In Two Months
This week’s price action has had a significant impact on the market sentiment on both sides for better or worse.
According to data acquired from the Crypto Fear & Greed Index, fear has drained from the mindset of market participants, with its measure gauge reaching around 50, which is neutral territory for the first time since the May bitcoin price crash.
The Index doubled within two days and in the past scored just 10/100, corresponding to the market sentiment of ‘extreme fear.’
There might be nonetheless some room to grow taking in mind that April’s all-time highs were accompanied by an ‘extreme greed’ score of 95/100.