In the past two weeks, the cryptocurrency world experienced a significant bull rally, with BTC prices showing double-digit gains. Additionally, the crypto fear and greed index was in the “greed” position at the time of writing, which caught investors’ attention and suggested a potential trend reversal in the coming days.
Crypto Fear and Greed Index
Bitcoin price, despite recent declines, continues to trade above the critical resistance level of $65,000, following the rises in recent weeks. According to data provided by CoinMarketCap, BTC’s price increased by over 4% in the last 7 days.
At the time of writing, BTC had a market value of over $1.32 trillion and was trading around $66,500. Besides Bitcoin, Ethereum (ETH) also saw price movements following the news of the spot Ethereum ETF, with bulls pushing the price up by over 2% in the last seven days.
The market events and future scenarios also provided important information through the fear and greed index. According to the analysis, the crypto fear and greed index was at 69 at the time of writing. This indicated that the market was in the “greed” phase, which is generally known to lead to corrections when these levels are reached.
Will BTC Price Drop?
BTC’s rainbow chart provided insights into whether a correction might occur.
According to the analyses, the rainbow chart showed that BTC was still at a low price for buying. This could be interpreted as an opportunity for investors to buy before potential price increases.
A one-month price analysis of Bitcoin showed a value change of 9%. Since the beginning of the year, BTC’s price has increased by 127%.
Considering that BTC fell below $20,000 last year, in 2023, it is not wrong to say that its current value is relatively high. However, the fact that BTC is still $7,000 away from its ATH worries investors.
Nevertheless, it is believed that BTC could reach new peaks and bring altcoins to their ATHs, influenced by the interest rate cuts expected to start in the last quarter of 2024 and the US presidential elections.
