A metric indicates that there is still extreme fear in the cryptocurrency market. However, the purchase of BTC and the bullish sentiment growth are leading to a considerable price rise.
After reaching USD 40,300, the price of Bitcoin (BTC) suffered a pullback to USD 38,400. It has been moving in that band for almost two weeks, which causes fear in the market. However, the growing demand and the bullish sentiment reported by analysts suggest there could be a sharp rise.
After the value of BTC hit its 2022 high of USD 48,000 in late March, it fell back. That fueled extreme fear in those that believed the rally marked the end of a correction season. The Fear & Greed index indicates that this sentiment continues, which may determine the value of Bitcoin in the coming days.
If the fear in the market motivates traders to sell their holdings, the price of Bitcoin may drop further. However, it would cause the cryptocurrency to rise in value if investors buy because they consider it cheap. Various specialists favor the latter situation as they see that this is already happening.
Trader Alberto Martin believes it is an excellent time to buy Bitcoin since it is below USD 40,000, which he finds too cheap. He is among those who predict that BTC will reach USD 100,000 this year. Analysts like TechDev, Willy Woo, and Crypto Rover, who warn that demand and holding are at all-time highs, share that bullish sentiment.
Those experts say that the price does not yet reflect the strength of the buyers since it shows enough stability. That happens despite multimillion-dollar purchases by investors with more than 1,000 BTC, known as whales. The movements of those long-term holders imply a considerable weight in the market.
The Price of BTC Remains Stable Despite Rising Demand
In 2022, the price of Bitcoin has had very low volatility in contrast to previous years. Although that situation does not allow traders to receive returns, it attracts institutional investors seeking further stability. Jurrien Timmer, the director of the financial company Fidelity, has explained that. He has described the cryptocurrency as boring due to its perceived value accumulation over time.
Given that context, analyst Crypto Rover told those bored with the Bitcoin price action that massive volatility will come after this monthly breakout. In the mid-2021 market, he commented that the BTC bullish sentiment is growing, although there is no evidence in the price, as validated by TechDev.
On-chain analyst Woo considers that the current buying level of Bitcoin resembles that of late 2020. At that time, high demand fueled the significant rise in its price from USD 10,000 to USD 60,000. For that reason, they predict that there could be a sharp increase soon.
The current stability of the BTC price could break upwards if the buying force exceeds the supply of coins. The growth in adoption at a global level would encourage the bullish trend. For example, the regulatory measures in countries like Cuba and Panama and the legalization in the Central African Republic are determining factors.
However, some analysts like Eduardo Gavotti, Tom Dunleavy, and Willy Woo find this prediction very uncertain. They warn that the pioneering cryptocurrency is acting as stocks do. Bitcoin has maintained a correlation with those assets, which are susceptible to the global economic context of uncertainty. Investors should be careful due to the war between Russia and Ukraine, rising inflation, and supply complications.
By Alexander Salazar
