Bitcoin Price Crosses the $23,000 Mark
The Crypto Winter of 2022 has been taking its time and investors have been reacting out of FOMO. The Greed and Fear Index has been measuring the market sentiments closely and has concluded that fear of the bear market has been the driver of the recent investor sentiments. However, the settling of the crypto market has brought some solace to crypto asset investors. With Bitcoin Price re-entering the $23000 level after crashing to lower values in June and Ethereum price surging to $1500 value, the crypto market is looking up for the onset of the bull market. Traders are expecting BTC price to venture into the $27,000 to $32,000 range now that Bitcoin looks to secure a daily close above its current range.
According to a CoinDesk report, Bitcoin (BTC) broke above the $23,000 value on Tuesday afternoon and was changing hands at around $23,350. In two days, the largest crypto by market capitalization has climbed by more than 12% and pushed the price to its highest point since bitcoin collapsed on June 13.
The Crypto Greed & Fear Index, which tracks investors’ crypto sentiments, moved from “extreme fear” to “fear” and rose 10 points to 30, the highest since April.
Most altcoins gained, with FLOW leading the charts, up 16% over the past 24 hours.
Ether (ETH) also climbed, by 6.9% to around $1,560. The second-largest crypto has been consistently outperforming bitcoin and hit a high of $1,500 on Monday, breaching its 50-day simple moving average (SMA).
Additional Read: Bitcoin Price Prediction Weekly
However frequent the changes in values of the various crypto assets, this spike in Bitcoin Price is believed to be different by various investors. Nevertheless, the bear market has a tendency of changing bullish crypto believers to turn on the bear sentiments. A piece of CoinTelegraph news showcased evidence of this reality that was on full display on July 19 after the recovery of Bitcoin Price back above $23,000 and was met with widespread warnings that the move was merely a fakeout before the market heads for new lows.
Not bad. But keep in mind that this still can turn into a classical fake out.
My general thesis still remains, bear market rally 🚀 pic.twitter.com/VxnH4mo6hW
— Jimie (@Your_NLP_Coach) July 19, 2022
Some traders believe that this time, this rise in Bitcoin’s value is different and the spike is not another step before diving into lower ranges. The pointed message of “this time is different” was offered by pseudonymous Twitter user Trader XM, who posted the following chart outlining why BTC is poised to head higher.
Additional Read: Top Crypto Prices Today
The above graph shows that BTC price did not retest the lower range even as four retests of the range high took place, and this trend is of the suggestion that buyers are now stronger than sellers.
The long time Bitcoin holders are still holding onto the most well known crypto asset available, according to various reports. However, this rise in the BTC price along with traders slowly shifting to the belief that this time the rise in Bitcoin’s value is for the bull run that is soon to come is showing positive ripples in the market!
PHASES OF A CRYPTO BEAR MARKET
Crypto markets, in general, is a very novel space with not a lot of history. However, here’s how bear markets in traditional financial markets tend to work.
Bear markets typically consist of four distinct stages:
- High prices characterize the first phase. After this period, investors begin to exit the markets and collect gains.
- In the second phase, asset prices and trading activity decline, company earnings decline, and previously optimistic economic indicators deteriorate. As the mood begins to deteriorate, some investors experience fear, a condition known as capitulation.
- The third phase is when speculators join the market, increasing prices and trade volume.
- Crypto continued to fall in the fourth and final phase, albeit slower. As lower prices and optimistic news re-attract investors, bear markets eventually transition into bull markets.
Read more in detail on Top Crypto Bear Market Indicators