The Bitcoin Fear and Greed index is at the 24/100 mark. A figure below 50 signifies fears among investors. In a market dominated by extreme fear, investors pull out their wealth by liquidating their assets or avoiding new investments.
Despite the low confidence, Bitcoin has established a new level of support at $18,339. The moving average analysis shows that the major Crypto will likely stay below $20,000 in the next 200 days; however, the price range will narrow in the short run.
Conversely, technical indicators show that BTC may rally after conquering higher price levels. The third resistance level is $20,041. The second level is $19,588, and the first level is $19,135.
The levels of resistance delay a rally, while the level of support will prevent the leading Crypto from plummeting.
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BTC is Maturing
Investing in Crypto is a popular option for wealth maximization, and financial investors are embracing it. BTC is more stable now compared to its early years of oscillating bulls and bears.
From an annual perspective, BTC has been volatile as its price range has been between $17,000 and $68,000. In 30 days, the market has significantly stabilized, and the price has been varying between $18,000 and $22,000. In 24 hours, the leading Crypto has hit a low of $18,970 and a high of $19,370.
The current time series analysis projection could prevail if the current year’s fear and greed index remain above 20/100. Meanwhile, if investors’ confidence wanes, the Crypto may fall to $18,000 in the short term.
Financial Markets Influence the Crypto Markets
The US inflation data consistently shows a worrying trend of galloping increases in the consumer price index. The Federal Reserve has been increasing the lending rates to mop up excess liquidity. Consequently, the financial markets have been on a downwards spiral. For instance, NASDAQ 100 Mini has shed off 9.55% of its capitalization in September, affecting the Crypto market adversely.
On Sunday, the index shed 115 points eroding investor confidence in the financial markets. Hence, market activities have remained low at the weekend as prospective investors wait for a further dip to invest at a bargain.
The Crypto Market is Set for a Weekly Bear Run
Week-on-week, the Crypto market is likely to rally. BTC plunged by 1.2% in the last day, and the Altcoins are under downward pressure.
Ethereum is under downward pressure, and it is currently trading at $1,288 after shedding off 2%on Sunday, compounding the seven-day losses to 0.45%. In the top ten Crypto ranking, BNB is the best performing Crypto after gaining 4.65%.