Bitcoin’s price will continue to come under extreme pressure so long as panic and fear prevail among traders and investors. The Crypto Fear and Greed Index has surged above a key support level. It still remains at 31, which shows that fear is winning in the market. Despite Bitcoin now being at $85,539.92, fear still seems to hang in the air. This uncertainty suggests a volatile price trajectory for the remainder of the week, with upside potential largely eclipsed by downside.
Market Indicators and Price Predictions
The Crypto Fear and Greed Index takes many factors into consideration. It considers trading activity, social media discussions, search engine trends, and bitcoin’s dominance over the other cryptocurrencies. According to the data from Coinglass, liquidation levels are heavily concentrated near the $89,500 price area. That means a major spike in trading activity would likely increase the pressure on Bitcoin to reach or approach this level. The overall market sentiment remains cautious.
Historical market cycles have determined a “Sell, BIG TIME SELL!” zone, showing possible tops. On the whole, the rainbow chart helps visualize Bitcoin’s long-term trends and suggests that we’re at price levels that may represent an excellent buying opportunity for long-term investors. This implies that Bitcoin is currently at least 16% undervalued.
Rainbow Chart Analysis
The rainbow chart provides a macro view on Bitcoin’s price action over the years. If historical cycles play out again by late 2025, the chart suggests Bitcoin could once again see a new all-time high near $250k.
Bitcoin’s price is currently trading below the game-changing support level of $82,500, deepening the doubt. The risk of the market surging and plunging at various points across those 22 hours looms large.
Investor Strategy and Outlook
The opposing signs of the Fear and Greed Index compared to the rainbow chart make for a confusing picture for investors. Despite the threat of short-term volatility and future price-crashing, the rainbow chart indicates long-term growth potential. Investors should be mindful of their risk appetite and investment horizon when deciding to act.
