Bitcoin price rose for a second consecutive day as sentiment around the crypto industry improved. BTC climbed to a high of $41,765, well above this week’s low of $38,800, though it remains far below its all-time peak near $70,000.
Fear and Greed Index
Bitcoin moved higher as investors rushed to buy the dip following this week’s sharp pullback. Data shows the Bitcoin Fear and Greed Index is still in the “fear” zone at 27. However, this reading is an improvement compared with last week’s extreme fear level of 25.
A closer look at Bitcoin’s performance indicates the cryptocurrency continues to be closely correlated with traditional assets such as equities. The tech-heavy Nasdaq 100 has staged a strong recovery recently despite a weak report from Netflix.
The macro backdrop has been somewhat volatile, with some commodities surging while others fell. At the same time, bond markets keep sending warning signals about the U.S. economy. This week, the 30-year Treasury yield surpassed 3% for the first time since 2018.
On-chain data shows some investors have begun buying on dips. According to Glassnode, a large amount of Bitcoin supply has been re-accumulated between $38,000 and $45,000. This range is an important market band because it helps define the current consolidation phase.
Glassnode also notes that most current Bitcoin holders acquired coins above $40,000 and are predominantly long-term holders. Meanwhile, many who bought above $50,000 have capitulated and redistributed their coins. As a result, while Bitcoin trades between $35,000 and $42,000, it remains in an accumulation phase.
Bitcoin price outlook
On the hourly chart, the coin has been in a strong bullish trend over the past few days. It managed to break above a key resistance level at $41,550, the high on April 13.
Bitcoin has also moved above the 25-period and 50-period exponential moving averages (EMA) while the MACD continues to rise. Given these technical cues, there is a reasonable chance BTC will push higher as bulls target the next major resistance around $44,000.