Bitcoin (BTC) trended towards a retest of $40,000 on Feb. 12 as BTC price action confirmed analyst predictions.
BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView
Trader hopes to avoid ‘ugly’ weekly close
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting local lows of $41,741 on Bitstamp on Saturday before bouncing back over $42,000.
A turnaround ended the pair’s advance after the US CPI data came in, with calls soon emerging for a return to $40,000 or even lower to see how firm the bulls’ resolve really was. .
For Cointelegraph contributor Michaël van de Poppe, the results were still inconclusive, but caution was definitely needed in short-term transactions.
“Bitcoin is still looking at the same resistance,” he said. summarized along with a chart showing potential support and resistance targets.
“Weekly block of orders is severely rejected. Weekly candle starting to look ugly + various levels of fear in the market for the next few weeks. Remains flat at this stage.”
BTC/USD 1-week annotated chart. Source: Michael van de Poppe/Twitter
Meanwhile, others drew attention to the potential extent of Bitcoin’s long-term downside.
“For those hoping to sub 30k$BTC, may the crypto gods be with you because the odds are not,” popular Twitter commenter Credible Crypto advised.
For those who expect sub 30k $BTC, may the crypto gods be with you because the odds are not. https://t.co/LJPDoa4KCx
— Credible Crypto (@CredibleCrypto) February 12, 2022
Even at current levels, Bitcoin’s weekly close was set to be virtually identical to the previous one, thus preserving most of the previous gains that had taken it out of the $30,000 zone.
Straight back to “fear”
However, this week’s late drawdown was compelling enough for crypto market sentiment to take a further hit.
Related: Bitcoin Stuck in a Tight Range as BTC Price Moving Averages Prepare for a Key Bullish Crossover
According to the Crypto Fear & Greed Index, three days of “neutral” territory was enough before “fear” returned as the main force in play among traders.
On Saturday, the Index measured 44/100, having reached 54/100 on Wednesday.
Crypto Fear & Greed Index (screenshot). Source: Alternative.me
Analyzing January’s trip to the lower “extreme fear” zone, the Decentrader trading suite argued that a reset of sentiment based on historical patterns had probably already occurred.
“Such prolonged periods of extreme fear give an indication that general market participants may be left out of the loop. We saw that play out with the rapid upward movement that $BTC has shown over the past two weeks,” the analysts wrote in a statement. market update published. Friday.
This post Bitcoin Falls Below $42K as Crypto Sentiment Returns to ‘Fear’
was published first on https://cointelegraph.com/news/bitcoin-dips-below-42k-as-crypto-sentiment-returns-to-fear