Bears Lose Hold On Market As Bitcoin Breaks $44,000, Crypto Market Tops Up $200 Billion
Bitcoin has once again recovered from what looked to be the beginnings of another bear market. The crashes had left the price of the digital asset struggling in the market, putting the bears ahead. With the recent rebound above $44,000, the bulls have obviously wasted no time in taking back control of the market. Wednesday’s fall below $40,000 now looks to be nothing but a blip on the radar.
Fear & Greed Index Breaks Out Of Extreme Fear
The beginning of the week has seen bitcoin suffer an onslaught of price dips. Dropping the value of the digital asset into one-month lows. This inadvertently played out in sentiment surrounding investing in the asset. With the dips, the Fear & Greed Index had slipped into the “Extreme Fear” territory. This prompted sell pressures of varying degrees across digital currencies in the market.
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Wednesday marked the lowest point of the bloodbath with bitcoin falling into the $39,600 territory. A dip that was almost immediately followed by small upward corrections pulled the price of the digital asset back into its low $40,000 trading range.
Fear & Greed Index moves out of extreme fear | Source: Fear & Greed Index on alternative.me
Thursday, on the other hand, has come with better tidings for the digital asset. The early hours of the morning featured a price rebound that added about $1,000 to the asset’s price in a couple of hours. Following this, market sentiment has shifted towards the positive. As of Thursday, the crypto Fear & Greed Index shows that sentiment has now moved out of extreme fear but remains in the fear region with a score of 27.
Bitcoin Shrugs Off The Bears
Bitcoin saw massive long positions liquidated between Monday and Tuesday as the price suffered. This contributed to the further downtrend that was experienced as Wednesday rolled around. The market crashes saw the total crypto market cap once again fall below $2 trillion. But with the recovery in bitcoin and other assets, a $200 billion addition to the market put the total market cap back up above $2 trillion.
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Bitcoin has now steadily held on to the $43-$44K price range. Holding off the bears long enough for the market to find its footing in preparation for another run-up. With positive sentiment gaining steam in the market, the sell pressure on the market is receding, giving way to more faith in the market. At the time of writing, bitcoin is trading north of $43K at $43,810.
BTC price recovers from Wednesday lows | Source: BTCUSD on TradingView.com
Featured image from BBC, charts from Alternative.me and TradingView.com