Bitcoin price now attempting to consolidate on track to reach $48,000 as Fear & Greed Index recovers

By Selena On Jul 27, 2021

All eyes are on Bitcoin’s lower lows. Because Bitcoin price had its first trip above $40,000 in six straight weeks. There is speculation that BTC is currently attempting to consolidate and form support at lower levels.

Bitcoin price has made a new higher high and is in search of a higher low

“Bitcoin rejects at the range high, which isn’t strange,” prominent crypto analyst and trader based in Amsterdam, Michael van de Poppe explained in a Twitter update. “The market has made a new higher high and is in search of a higher low. The levels that I’m watching are $34,500–35,800 and the area around $32,500.”

Source: Michael van de Poppe/Twitter

A look at the levels of buying and selling on major exchange Binance confirmed the importance of those price points, with substantial support by buyers in just under $36,000. On the other hand, sellers are still concentrated at $40,000 or more.

BTC/USD buy and sell levels (Binance) as of July 27 | Source: Material Indicators/Twitter

Meanwhile, popular trader Pentoshi questioned that, did people really expect 45-48k in one day? “You broke the downtrend on high volume, you broke back into the range and made a HH on the daily. You teleported to resistance, it could take 2 or 3x to break it but that’s coming in the next weeks imo. Dips are for buying,” he added.

Source: Pentoshi/Twitter

Meanwhile, the cryptocurrency market is recovering slightly after the main market sentiment indicator hit yearlong lows with a value of 10, while Bitcoin rises above $30,000.

Crypto Fear & Greed Index as of July 21 | Source: Alternative.me

The Fear and Greed indicator measures emotions and sentiments from different sources and compiles them into one value that allows traders to evaluate current tendencies on the market. A market-to-index correlation was always a thing with the Fear & Greed indicator. Before the recent market bounce, the same event occurred in March 2020, when the indicator once again hit 10 and Bitcoin immediately recovered.

Crypto Fear & Greed Index as of July 27 | Source: Alternative.me

At press time, Bitcoin was trading at the value of $37,601 after a retrace from $40,000 within a couple of hours. Recovery was most likely followed by the fact that Amazon denied a recent report about a cryptocurrency acceptance plan.

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