Bitcoin (BTC) has experienced a significant price gain of over 20% since last Thursday, prompting speculation that the rally may soon take a break. Matrixport’s bitcoin Greed & Fear Index (GFI) has surged from under 10% to 93% in just one week, indicating a high level of greed and optimism in the market. Markus Thielen, head of research and strategy at Matrixport, suggests that short-term traders may want to consider locking in some gains at this point.
However, despite the exuberance in the market, the 21-day simple moving average (SMA) of the GFI is still below the 90% mark, indicating that the overall trend for Bitcoin remains on the higher side. Thielen believes that there is still potential for more upside after a period of consolidation to work off the current momentum.
Chart analysts also see potential for a rally to $35,000 and beyond. Market analyst Josh Olszewicz points out that Bitcoin successfully bounced on a “throwback” area and completed a falling wedge setup, suggesting a move towards the mid $30k range with heavy resistance and a reconsolidation before any further upward movement.
At the time of writing, Bitcoin is trading at $30,065, according to CoinDesk data. Meanwhile, Ether (ETH), the second-largest cryptocurrency by market value, has gained 15.9% since last Thursday, but is underperforming Bitcoin. Ether’s GFI index has not yet reached 90%, indicating that it could continue to rise while Bitcoin takes a breather.
Overall, the recent price gain in Bitcoin has been impressive, but market indicators suggest that a period of consolidation may be on the horizon. Traders and investors are advised to monitor the market closely and consider locking in some gains in the short term.
How do market indicators and chart analysts’ predictions influence the recommended course of action for Bitcoin traders and investors
Bitcoin’s recent price surge of over 20% has sparked speculation that the rally could soon slow down. Matrixport’s bitcoin Greed & Fear Index (GFI) has skyrocketed from under 10% to 93% in just one week, indicating a high level of greed and optimism among investors. As a result, Markus Thielen, head of research and strategy at Matrixport, suggests that short-term traders may want to secure some profits at this point.
However, despite the excitement in the market, the 21-day simple moving average (SMA) of the GFI is still below the 90% threshold, suggesting that the overall trend for Bitcoin remains upward. Thielen believes that there is still potential for further gains after a period of consolidation to balance the current momentum.
Chart analysts are also optimistic, with some predicting a rally to $35,000 and beyond. Market analyst Josh Olszewicz highlights that Bitcoin has successfully rebounded from a key support level and completed a falling wedge setup, indicating a potential move towards the mid $30k range. However, heavy resistance and a reconsolidation may occur before any further upward movement.
Currently, Bitcoin is trading at $30,065, according to CoinDesk data. In comparison, Ether (ETH), the second-largest cryptocurrency, has gained 15.9% since last Thursday but is underperforming Bitcoin. Ether’s GFI index has not yet reached 90%, suggesting that it may continue to rise while Bitcoin takes a temporary pause.
In summary, while Bitcoin’s recent price gain is remarkable, market indicators indicate that a period of consolidation may be on the horizon. Traders and investors are advised to closely monitor the market and consider securing some profits in the short term.
