The whole crypto market is starting to be a bullish reversal signal, going all green during the first week of May. Market indicators have jumped up to 73, moving them deep into the “Greed” zone. That’s the most in two months, but cynicism about the state of the economy remains entrenched.
Our new market indicator has been flashing a bearish market for over six months—since February 24, 2024. Now, the cost of it has at last climbed up into the “Greed” zone. This shift suggests growing optimism, but analysts remain divided on whether this marks a true end to the bear market.
Analyst Burakkesmeci used the 30-day and 365-day moving averages (30DMA and 365DMA) to determine the bullish prospects.
"More importantly, the Bull-Bear 30DMA — a short-term moving average — has turned upward. If this metric crosses above the Bull-Bear 365DMA, history suggests we could see parabolic rallies in Bitcoin once again," - Burakkesmeci
Analyst Darkfost provided a more sober take on the Growth Rate Indicator, remembering false “moon” calls from summer 2024.
"It's possible that traditional market dynamics will continue to be disrupted for some time, making the current environment particularly difficult to read," - Darkfost
When Donald Trump signed a free trade agreement with the UK, this mitigated the worst fears of a tariff shock. One, this move set an unusual precedent which drastically affected the sentiment in the market. The WTO trade agreement The trade agreement was enough by itself to engender a strong sense of cautious optimism.
The indicator has extended into the “Greed” zone, where it is at an all-time high. This move represents a huge change from the overwhelming bearish signals that have dominated this market for ages. This transition, along with the market’s green momentum as of late, fuels the theory of a reversal in the green wave.
