Bitcoin price rises above $43,500, “Greed” is just showing its face after months of “Fear”

By Selena On Aug 7, 2021

Bitcoin price break above $43,000 is the highest price in months of complicated struggle. This could be the signal to reactivate the bull market that investors have been eagerly waiting for.

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price jumps above $43,000, a new opportunity?

BTC rallied to all-time highs at $43,700 in months; since May 19, BTC was in freefall before a whirlwind sell-off below $30,000. At press time, BTC is changing hands at $43,472, recording a 6% increase over the past 24 hours.

Bitcoin had built strong momentum since last week when the positive sentiment from investors returned, pushing BTC price to $42,000 and closing the green July candle, opening August very well.

However, the correction must immediately occur below $38,000 to create a springboard for the buyers to continue accumulating to move towards higher milestones. It could also be since whales have continuously pushed the supply of Bitcoin liquidity since BTC hit $64,863 during this period. Combined with the continued positive macro factors surrounding the BTC breakout, it is very likely that we will restart a highly anticipated bull cycle to come.

On-chain data is very supportive of this Bitcoin trend. The drop below $38,000 on August 4 correlates with 11,300 exchange flows being pushed onto exchanges. However, just two hours later, 19,300 BTC has flowed out, proving that the bulls are firmly defending Bitcoin, and the demand is huge at the current price levels.

Bitcoin inflows and outflows on exchanges | Source: CryptoQuant

Bitcoin’s stockpile continues to decrease on all exchange fronts. Investors’ sentiment seems to buy and hold, which is in stark contrast to the upward movement of BTC price.

Amount of Bitcoins in reserve on exchanges | Source: CryptoQuant

After a week of surveying the market at the “Neutral” index to strengthen the market’s confidence, the Fear and Greed Index also reached the threshold of 69 for the first time, equivalent to “Greed” after many months of maintaining at the short level.

Crypto Fear & Greed Index as of August 7 | Source: Alternative.me

If greed is returning and leverage is available, people will use it. What will happen then? Go back to LeClair’s chart and check out October 2020, the last time that the leverage was in the red. Could we be entering a run the size of what followed that? The chart that this pseudonymous analyst presents suggest that.

Crypto analyst Kevin Bebee stated, “Bitcoin weekly candles are sized similar to the run from 11k to 19.5k. 19.5k is where we had serious resistance for few weeks (as now with 42k). Then it was off to the races and the price tripled. Tripling from here is 120k.”

Source: Kevin Bebee

We might be at the cusp of a historical moment. The indicators and characteristics seem healthy and ready for blast-off. Finally, Ethereum’s EIP-1559 event impacted the market in no small part. Since 5 hours before EIP-1559 on August 6, Coinbase Premium fees have suddenly grown dramatically. This shows that there is a lot of buying going on, completely driving the bull market.

However, Bitcoin’s performance in the last 2 weeks of July and early August completely “smashed” doubts about the FUD rumors that negatively affected and lowered the price of BTC, confusing the investor community. We still have enough grounds to believe a bigger achievement for Bitcoin this year with the current data.

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