Lately, over the last week bitcoin has experienced a lot of volatility. Several factors continue to remain unfavorable for BTC and the crypto sector.
The BTC fear and greed index has continued to rise. It reached the mark of 37/100 when it moved out of the red zone. This was a first after December when the index was at 41/100. BTC experienced a 11.41% gain. If BTC stays at the $41,00 level it could later touch $43,000 levels. If the BTC fear and greed index touches 50/100, BTC’s price could even reach $50,000.
BTC’s Price Trends
The volatility in BTC’s prices is largely due to the dip in the fortunes of the tech companies. This is accompanied by the continuing uncertainty around regulations in the crypto space. Added to this the impending raising of interest rates by the Fed and the geopolitical risk arising out of the tensions in Ukraine.
However, there are indications of a bullish trend. The bullishness is based on the fact that the 50-day EMA surpassed the 100-day EMA. If there is a bullish cross there is the likelihood of BTC touching $42,000.
The prices need to stay above the 200-day EMA. Else, it could trigger prolonged selling. If BTC avoids a fall below $41,564, then it could rise to Saturday’s high point of $41,954 and then $42,000. BTC last touched $43,000 on 20th Jan. To reach that level gain it needs to go past the first resistance of $41,927. Then once at $42,000 it would need to beach the second resistance level of $42,436. BTC’s support of $40,454 could ensure that the fall is kept to a minimum.