Bitcoin dropped to the $47k region during one of the worst price corrections it faced. A break above $51,000 leads to hopes that possibly a price drop below $50k will never take place again.
More important the bulls are eager to see a new price rally as BTC finally breaks above $51,000 after various testings. The question of if the break above $51,000 signifies a new bullish run is still a widely debated topic.
To answer the question of if a surge above $51k will mark the beginning of a new bullish run, a few factors need to be considered.
The first factor is the fear and greed index. Before the time of writing, the BTC fear and greed index was reading at 37. At the time of writing, the meter shows increased fear as it is currently displaying 31 and edging closer to the extremity.
The current greed and fear index only translates to traders actions. With increased fear in the market, the bearish dominance only seem to be more prolonged as more traders are selling off their asset and holding cash or stablecoins.
If the fear in the market does not subside, traders can expect a further drop below $47k. A drop below $47,000 may only trigger a panic in the market with more sellers doing their thing.
At this point in the dip, supports will become double edge sword. While some supports will flip, causing further panic selling in the market others will hold encouraging a price rally.
To the delight of the bears, BTC may drop to $38,000. There is a CME gap that is yet to be filled at $38k. Although the gap is not as wide as its counterparts, it is one of the oldest this year.
With the ravaging price corrections, traders may bank on the $37k support once the $40k breaks. The above prediction will be invalid if a price surge takes place pumps BTC back to $60k
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