Lately, bitcoin has been having a good run. That run ended on Sunday. On Saturday, BTC rose by 1.11% and later in the day fell by 0.75% to end the day at $37,914.
BTC enjoyed a good run for five days. But this would be little consolation for the BTC traders and investors who were harboring bullish sentiments. During the good run, BTC rose only by 4.4%. This was not enough to reverse the earlier fall of 15.7%.
By Sunday, the general volatility in the crypto market had all the major crypto players worried.
Bitcoin – Price Trends
The brief period of the five-day good run for BTC led to a rise in the bitcoin fear and greed index. In the initial part of the week, the index rose on the strength of the bullish outlook. However, later in the week, the crypto market’s uncertainty led to a fall in the index. The index continues to be in the red zone. The index was at its highest in November. A fall into the orange zone would signal a good time for buying.
Crypto traders and investors are looking out for the announcement by the US Fed on the easing of monetary policy. The Fed is expected to announce interest rate hikes to curb inflation. Fed’s announcement will affect the general appetite for crypto investments which are seen as risky.
Another area of concern for the crypto market on the regulations front is the outcome of the SEC-Ripple case.
BTC’s price has been witnessing volatility. Only an extended rally could bring it past resistance levels to $40,000 levels. BTC price remains above the 50-day EMA level. Rally past the 100-day EMA will see it go past $40,000.