Bitcoin (BTC) price has been fluctuating in a tight range for the past few days. The largest cryptocurrency by market capitalization has so far failed to recover from the impact of FTX’s bankruptcy.
BTC is trading at $17,210 per hour, up 1.5% in the last 7 days. The situation is similar for other cryptocurrencies.
Fear & Greed Index suggests investor anxiety
Bitcoin and other cryptocurrencies continue to face the consequences of the FTX crisis. Investors are scared of new crypto investments because there are currently significant risks to the crypto industry. After the crash of FTX, Alameda Research and Genesis, there are fears that other crypto projects could meet a similar fate.
A clear sign of investor concern is the widely followed Fear & Greed Index for cryptocurrencies. He’s 26 right now, which is in the extreme fear range. More often than not, Bitcoin struggles to recover when fear dominates the market.
Not only cryptocurrencies are facing problems today. CNN Money’s overall fear and greed index has fallen from 63 to 57 in the past few days. The drop coincided with falling stock prices this week, as the Dow Jones and Nasdaq 100 fell for six consecutive days.
One of the main concerns for investors is what the Federal Reserve will do after the new economic data coming out of the United States. The figures show that the American economy is doing well since the unemployment rate remained at 3.7%. Meanwhile, an ISM Report On Business reveals that the services sector has been expanding for 11 consecutive months.
Although the Fed has signaled a slowdown in rate hikes, some analysts expect the US benchmark interest rate to top 5% in 2023. Bitcoin and other risky assets tend to underperform when interest rates are also high.
Meanwhile, the number of bitcoins stored on crypto exchanges has fallen to around 2 million. Last year it was over 3 million. This drop is a sign that some investors are transferring some of their coins to cold wallets while others have sold them.
bitcoin price prediction
Looking at the price chart, it can be seen that the price of BTC has been relatively constant over the past few days. During this period, it remained below the key support at $17,606. The current price is also below the moving average lines while the Average True Range (ATR) has fallen. This is a sign that volatility has decreased.
More importantly, the Wookalich ratio has gone down for Bitcoin. It is an important tool derived from the NVT signal and used to predict highs and lows. Therefore, the coin is likely to experience a bearish breakout in the coming days as the sellers target the $15,000 support.
In this guide, we explain how to buy or short sell bitcoins.