Markets
What is the future of BTC as the Crypto Fear and Greed Index collapses
Bitcoin Price Analysis: The price of BTC increased on June 12 after Senator Elizabeth Warren wrote a letter to federal regulators asking them to cut rates. The price of Bitcoin then cooled after the FOMC press release revealed that rates would remain unchanged. BTC price has returned to pre-FOMC lows.
Bitcoin price stood at around $66,736 during European business hours on Friday, a decline of 1.3% in 24 hours and a further decline of 6.1% in 7 days. CoinGecko data.
Bitcoin Price Analysis: Can Bulls Bounce Off This Key Support?
BTC price action has been choppy for most of the last 30 days. Nonetheless, the asset continues to hold above the 50-day and 200-day simple moving averages (SMAs), indicating bullish sentiment on the market. The price action is currently located at the 50-day SMA, which coincides with a major support structure around the $66,000 level. This is a strong resistance turned support, tested up to 5 times in the last two months.
This is the last defense level for bulls and they can hold it, BTC price can bounce off it and gain $72,500. If the bulls fail to win the fight, Bitcoin price could find support around $60,000 and $57,000 (200-day SMA).
On a macro scale, the weekly Bitcoin price chart shows an extremely bullish market structure – a bull flag with a possible 66% upside potential if it resolves to the upside. The Fibonacci retracement tool shows that the price action touched the 0.5 retracement level in April, when Bitcoin price collapsed to a low of $56,500.
Bitcoin fundamentals fuel market greed
Data from Alternative, a market sentiment analysis firm, shows that the market is eager for Bitcoin investments. This means that investors are still rushing to buy more Bitcoin and are of the opinion that there could be more upside for the cryptocurrency king.
Despite the falling price, Bitcoin fundamentals have never been stronger, which may have fueled the market’s greedy sentiment.
Meanwhile, data from Santiment, an on-chain analytics firm, shows that Bitcoin supply on exchanges has fallen below 940,000, the lowest recorded since 2021. This signals that investors are bullish on the asset and they are in no hurry to sell at any time. Soon.
MicroStrategy has also begun raising $500 million via convertible senior notes to buy more Bitcoin. With over 214,000 BTC already in its possession, it remains the largest public company holding Bitcoin in the world.
Bottom line
The impact of financial regulators on cryptocurrency markets has diminished over time and, as witnessed on Wednesday, is at an all-time low, especially for Bitcoin. The good news related to economic interest rates produced only a 4.5% increase. This could indicate that cryptocurrencies are decoupling from political and traditional regulations.
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