Good recovery from the Market and Fear Index

I think, after 10 days of the new year have passed and we are approaching the middle of the first month in 2022, Bitcoin will have a reaction and will not continue to settle much at this level, which is 41 thousand, as it will either return again to 50k or fall below 41 thousand.

Certainly, the beginning of 2022 was difficult for all crypto traders, especially futures, who were disappointed after Bitcoin fell to its lowest level in a long time and reached 41 thousand dollars with a violent decline approaching 10% and this after it was swinging around 50 thousand last year.

With the beginning of the new year, everyone started comparing the current price of Bitcoin to its price last year, which also reached 41 thousand dollars, but unlike this time of the year, everyone was pleased with this price because the Bitcoin was rising from below and breaking the 40k barrier and reaching this price. The year is coming back from the top, so the feeling is definitely different.

Although more than half of crypto traders do not have Bitcoin in their wallets, the effect of the Bitcoin drop does not leave anyone in the market, and I will not exaggerate if I say that it affects other central markets.

Recovery and New Hope

Bitcoin began to rise a little and reached about 42 thousand dollars after it was at a price of about 41500 dollars, and although this rise, which reaches 1%, it had the effect of magic on the crypto market.

This slight Bitcoin rally made a lot of currencies move up slowly as well, which made MarketCap again approaching 2 trillion dollars, which is good for reassuring people, especially with the annoying messages that say Bitcoin is just a bubble and that decentralizers should run away.

While on the other hand, this effect was greatly explained in the fear and greed index, which reached about 23, and although it is still in Extreme Fear mode, this indicator has increased significantly after reaching its lowest level in months, which is 10.

If the bitcoin continues to rise to the top, even if it rises 2%, it will create a state of great reassurance in the market, which in turn may push the price to the top more and more.