According to information from CoinGecko, the total capitalization of the cryptocurrency market has decreased by 2% to $2.48 trillion. This negative prediction reflects the ongoing sell-off wave that has ravaged regular investors’ portfolios, leaving nothing but disappointments. Bitcoin is trading in the red at $65,510, above support at $65,000.
The index of Bitcoin fear and greed remains high
Bitcoins price has fallen by 2.5% in the past seven days, following a 4.5% drop in the past two weeks. The most reliable short-term support seems to be in the area around $65,000.
Holding this level will support the market’s optimistic outlook for the remainder of the week, which is supported by growing expectations of a price rise towards $70,000.
The Crypto Fear and Greed Index, which indicates the early stages of greed, remain steady at 74 despite the lack of enthusiasm. In other words, investors believe that, given its current price, Bitcoin is still a worthwhile investment.
According to a CryptoQuant’s analysis, ordinary investors have yet to join the surge; hence, Bitcoin has not seen its impact. Retaining investors frequently enter the market when enthusiasm intensifies. However, with Bitcoin trading below $70,000 and support below $65,000, long-term investors are likely to provide support.
“This structure shows that we have not however accomplished the cycle’s top euphoria. The market’s majority of long-term holders creates a stronger price support basis,” CryptoQuant’s observed.
Analysis of Bitcoin Prices: Is Now the Right Time to Buy?
With a possible short-term recovery, Bitcoin is heading lower in a falling wedge pattern. Support at $65,000 must hold, though, in order to justify such a move.
The Relative Strength Index (RSI), which is still hovering around 40, is tilted more towards selling. If the RSI continues to decline, traders may decide to go short on Bitcoin, putting more pressure on the support at $65,000. If the sell-off continues, Bitcoin will have no choice but to seek additional liquidity at lower prices, such as $63,000 and $60,000, respectively.
Two death cross patterns on the same four-hour chart indicate that sellers have the upper hand, at least for now. As a result, bulls face a difficult struggle to overcome sellers and reform the upward trend.
The falling wedge formation will remain unconfirmed until the Bitcoin price crosses the upper trend line barrier. After the breakout, traders will increase buy orders in anticipation of gains up to $71,000.
