According to what is shown by the index of fear and enthusiasm, fear is back on bitcoin.
In fact, after having recently recovered to almost 30, on 5 July, it fell again to 20 yesterday, and today it could even drop again.
The trend of the index of fear and enthusiasm of Bitcoin
The highest point in recent weeks was reached on June 15, at 38, but still well below par (ie 50).
It should be noted, however, that from the end of October to mid-May it had remained almost constantly in positive territory, above 60, practically for almost seven months in a row, with even the permanence above 80 between the end of November and mid-January, and then during the middle weeks of February.
That is, in the past months, enthusiasm had clearly dominated the crypto markets, probably even in excess.
The index returned to negative territory on May 13, and has not recovered in nearly two months since then.
Bitcoin and Ethereum to the upside?
Bitpanda Chief Product Officer Lukas Enzersdorfer-Konrad points out that after a few weeks of volatility, the crypto market was back in the positive across the board last week . But the weekend rally was characterized by low trading volumes.
However, bitcoin is successfully maintaining the support level of 25,000 euros, which suggests that the build-up is ongoing.
Enzersdorfer-Konrad notes that the price is moving within a falling wedge pattern that started forming in mid-June. This is a bullish pattern, but the price must break its upper trend line in order to grow.
Another parameter that suggests that the accumulation is still ongoing is that of BTC held by whales , given that for example the bitcoins held overall on the addresses they hold from 1,000 to 10,000 BTC has increased by over 80,000 BTC lately, reaching the highest figure. high since May.
“The renewed buildup of whales is good news for the market, as wealthy investors are mostly long-term holders, not traders who are taking short-term positions in the market.”
Something similar is also happening to ETH , the price of which is moving inside a falling wedge formation.
The relative price stability of BTC, and the anticipation of major protocol updates, according to Enzersdorfer-Konrad are fueling investors’ appetite for Ethereum.