Bitcoin has shown resilience, bouncing 5% in the last 24 hours, according to Matrixport data. The rebound follows a drop in the greed and fear index to an all-time low.
Such levels have often marked tactical bottoms in the market, suggesting that the cryptocurrency may find a temporary floor. This recovery is in line with technical expectations, especially given that Bitcoin has bounced off the lower boundary of its descending channel.
#Matrixport today 📈 – Sep 10: #Bitcoin jumps 5% as greed and fear index signals tactical day, traders eye key technical levels📌#Crypto #cryptomarket #MarketTrends #BTC #investing pic.twitter.com/nKtYg9PrmE
— Matrixport Official English (the only official X) (@Matrixport_EN) September 10, 2024
Matrixport’s latest chart report highlights several critical points. Bitcoin’s recent rally highlights the effectiveness of the Fear and Greed Index as an indicator. This index, which measures market sentiment, has reached a low that historically precedes price recoveries. As such, it has served as a useful indicator for predicting potential market reversals.
Read also: Bitcoin bounces 5%, signaling a possible market reversal
Additionally, Bitcoin has been capped by a descending channel, and its recent bounce off the lower boundary suggests that traders are keeping a close eye on these technical levels. The lower boundary, in particular, has served as an important support level.
Market driven by technical factors
The current market movement appears to be primarily driven by technical factors. With both the Fear and Greed Index and the Descending Trend Channel providing strong signals, traders are reacting to these indicators in anticipation of further fundamental developments.
Recent Bitcoin Price Action
The Bitcoin chart for the past months shows the price trend from February to September, with the cryptocurrency fluctuating between $45,000 and $75,000. Bitcoin is currently trading at $57,198.53, up 4.04% in the last 24 hours.
The 1-day Relative Strength Index (RSI) is 47.62, indicating that Bitcoin is neither overbought nor oversold. Additionally, the 1-week Moving Average Convergence Divergence (MACD) is showing slight bullish momentum, suggesting potential short-term gains.
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