Categories: Bitcoin Latest News

Bitcoin And Ethereum Retrace Before Crypto Sentiment Could Reach “Greed”

Sentiment around the crypto market had been on the rise when the price of Bitcoin and Ethereum had picked up some momentum. Both of these digital assets had been able to reach a new two-month high following the surge in prices. This resurgence quickly saw positive market sentiment erode over negative and pushed the Fear & Greed Index close to “Greed.” However, before the market could enter this green territory, the retracement began.

Crypto Market Shies Away From Greed

The recovery in price had put the market sentiment on a positive path that it had not seen in a while. The optimism had grown so quickly that the Fear & Greed Index had seen more than 30 points added during this time period. What this meant was that the market had been able to clear out of the “Extreme fear” territory and traverse into the higher end of fear.

Slowly but surely, the index had seen the recovery inch it closer to greed. At its highest, it had reached a score of 44 on the index, only 6 points shy away from “Greed.” This was when the price of bitcoin had been trading close to $25,000, and Ethereum had beat $2,000.

Expectations were that this trend would continue, and the market would finally find itself once more in greed. But that would prove not to be the case this time around. After touching a new 4-month high of 44, the market had quickly retraced and, with this retracement had come to a reversal in investor sentiment. 

Market retraces before hitting “Greed” Source: BTCUSD on TradingView.com

Additionally, the market has been pumping off the news of the upcoming Ethereum Merge. The upgrade is still about a month away, and anticipation continues to mount. So going by what the market has recorded in the last couple of weeks, the recovery is likely not over.

Related Reading: Why This New NFT Integration May Be What Cardano Needs To Break $0.6

A small retracement is not out of the ordinary following periods where cryptocurrencies have returned double-digit gains. A correction is often good for the market, contrary to popular belief. Both these digital assets also continue to trade high above their 50-day moving average. This indicates that another bounce might be coming for the market.

Featured image from crosswalk.com, charts from Arcane Research and TradingView.com

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

Tags: bitcoinbtcbtcusdBTCUSDTETHethereumethusdETHUSDTmarket sentiment

NewsBTCRead More

Recent Posts

Bitcoin May Be More Vulnerable to Negative News Near $100K, Data Suggests

Yes, you read the title correctly, and it does appears contradictory. As bitcoin (BTC) nears…

49 minutes ago

XRP, DOGE Lead Crypto Losses as Weekend Pullback in Bitcoin Causes $500M Liquidations

Bitcoin (BTC) pared last week’s gains with a price drop from $98,500 to as low…

49 minutes ago

Le Bitcoin va atteindre 140 000 $, selon trois IA gérant un fonds d’investissement de 30 millions de dollars

Intelligent Alpha construit des portefeuilles en s'appuyant sur des choix d'investissement basés sur l'IA. L’entreprise…

4 hours ago

Bitcoin Price Pauses Under $100K: Bulls Eye the Milestone

Bitcoin price is consolidating below the $100,000 resistance. BTC bulls might soon attempt to breach…

5 hours ago

Bitcoin Realized Profit Hits ATH At $443 Million – Local Top Or Continuation?

Bitcoin has surged past the $99,800 mark, setting a new all-time high as it inches…

7 hours ago

Bitcoin Taker Buy/Sell Ratio Surges On Major Exchanges — Who Is Buying?

The price of Bitcoin has somewhat cooled off, struggling to reach the highly-coveted $100,000 mark,…

21 hours ago