Quick take:
- Bitcoin has recaptured $23k and could be prepping to retest its recent all-time high of $23,800
- The crypto fear and greed index has hovered around 90 since early November
- Traders are bullish despite the pullback to the $22,300 level
- Bitcoin could very well break $24k and aim for $25k
- $20k is Bitcoin’s macro support level
The weekend is in full gear and Bitcoin has once again moved into bullish territory by recapturing the $23k price zone. At the time of writing, Bitcoin is trading at $23,500 which is a substantial bounce from yesterday’s low of $22,300.
Crypto Fear and Greed Index Plateaus Above 90
The excitement surround Bitcoin can best be illustrated by the crypto and fear index continually maintaining a value above 90 since November 6th. At the latter date, Bitcoin was trading at around $13k and would go on to wow the crypto community by posting an all-time high of $23,800 on the 17th of December. This feat by Bitcoin was achieved exactly three years since its last all-time high of $20k.
Below is a screenshot of the Crypto Fear and Greed index highlighting the manner in which it has hovered around 90 for close to two months now.
Bitcoin Traders Remain Optimistic
The crypto fear and greed index remaining high echos a similar observation by the team at Santiment in which traders continue being bullish despite Bitcoin being in uncharted territory. According to the team at Santiment, the discussions surrounding Bitcoin are high despite BTC suffering the aforementioned pullback below $23k.
Traders appear to be quite bullish about this pullback from #Bitcoin‘s $23.7k all-time high yesterday. Now at $22.7k, the amount of discussion related to #buy, #buying or #bought is at its highest level since the last mild pullback on December 1st.
Bitcoin Could Attempt $24k and Ultimately $25k
The crypto-verse is abuzz with short-term and long-term predictions of Bitcoin with a consensus that a major dip is unlikely. This is due to the continual accumulation of Bitcoin by institutional investors who now collectively hold 953,190 BTC in their treasuries. This is a 7.24% increment in Bitcoin holdings since December 9th when their collective bags were at 888,864 BTC.
According to the latest market update by the team at Crypterium analytics, $24k and even $25k is possible for Bitcoin moving forward with $20k acting as a macro-support area.
No doubt we will see testing of the $24,000 level in the coming days. Bitcoin will be able to break it, if it fixes above $23,600 on the 4-hour timeframe. In this case, most likely, we will be able to see another lumbago up to at least $25,000.
It should be kept in mind that Christmas will begin in a week. This means that many market participants will fix their positions. Therefore, we do not rule out a drop to $20,000 and below next week.
