The current sentiment in the cryptocurrency market as gauged by the Fear and Greed Index is showing a neutral stance, which marks an improvement from the fear-driven outlook observed earlier in September.
Despite a recent pullback from $66.5k to $60k, market participants seem relatively unfazed by the correction.
An analysis by a recent CryptoCrypto report highlighted certain price levels, termed as liquidation zones, which could potentially attract market interest. The $66.2k threshold continues to act as a strong resistance, potentially deterring bullish momentum.
Conversely, historical patterns suggest a strong bullish movement might be on the cards.
Status of Market Sentiment in Crypto Space
The Bitcoin Fear and Greed Index graph offered insights into the prevailing market sentiment, indicating a neutral outlook amidst recent price movements.
The descending channel, depicted in white, witnessed a breach of its mid-point on the 18th of September. Subsequent price action saw a rally towards the channel’s upper bounds, only to face rejection. The $64k region has now transitioned into a resistant zone.
The Chaikin Money Flow (CMF) recorded a value of -0.09, signaling a substantial outflow of capital from the market, accompanied by noticeable selling pressure. The On-Balance Volume (OBV) mirrored consistent selling activity over the last couple of weeks, albeit showing signs of a minor recovery.
The Relative Strength Index (RSI) reflected a neutral standpoint with a reading of 52.
A dip into the $58k-$60k range could present an attractive buying opportunity, while a breakout above $66k-$67k with a subsequent support retest might signal a shift towards a more optimistic sentiment, potentially leaning towards greed.
Insights from Tether (USDT) Chart for Bitcoin Trends
The dominance trend of Tether (USDT) inversely correlates with general market movements in the cryptocurrency sphere. A rise in this metric typically indicates a bearish market trend, accompanied by a shift of investor funds towards stablecoins.
The 5.79% mark serves as a resistance point for USDT.D, hinting at a potential downward trajectory in the near future, possibly paving the way for a short-term upward movement in Bitcoin prices.
Nonetheless, the metric has exhibited an upward trend since March, as depicted by the ascending trendline. Traders and investors are advised to exercise caution with bullish forecasts until a breach of this trendline occurs.
Disclaimer: The views expressed in this analysis are personal opinions and do not constitute financial, investment, or trading advice.