Bitcoin Market Expected to Cool Off in 4 to 6 Weeks
Recent analysis indicates that changing investor sentiment may impact Bitcoin's price in the upcoming weeks. Key insights include:
- The Bitcoin Fear and Greed Index has shifted from extreme greed to moderate greed, dropping by around 22 percentage points over two months.
- Periods of extreme fear have historically correlated with market bottoms, while extreme greed often precedes corrections.
- A further decline of 10 to 15 points in the index could signal a cooling-off period, reducing emotional price movements.
- Analyst Axel Adler Jr estimates it may take 4 to 6 weeks for the index to drop further.
- The 30-day moving average is nearing a local bottom similar to levels seen before previous price increases, suggesting potential breakout for BTC.
Currently, BTC is priced just below $84,000, down 0.5% in the last 24 hours.
