Bitcoin stays higher after stocks drive BTC cost toward $42K
The weekend begins with an uncanny lack of volatility — or big Bitcoin price corrections — on crypto exchanges, thus "fear" is in the air.
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Bitcoin (BTC) held above $41,000 into the end of the week after a late flood Friday took the biggest cryptographic money to fourteen day highs.
BTC/USD 1-day candle chart (Bitstamp).
"A dead bear is the only good bear."
Data from TradingView showed BTC/USD holding previously reclaimed ground on Saturday, with the pair's link to stock market indices firmly in focus.
Analysts had identified the $39,600 level as a critical line to cross and switch to new support in order to secure additional upside. In the end, this was no problem for bulls, as Bitcoin "gapped up" in seconds when it approached $40,000 and continued to rise.
Despite the additional power, the attitude was noticeably more upbeat than it had been in recent days or even weeks.
Credible Crypto, a popular analyst, contrasted current movement to Q4 2020, when Bitcoin battled $12,000 before breaking three-year all-time highs.
"The only nice bear is a dead bear," trader and analyst Pentoshi remarked as the market surged to new highs of $42,000.
Others were less confident of the present trend's viability, with data suggesting significant large-volume selling beginning as low as $40,000 reappearing.
The time-tested relative strength index (RSI) had already broken a two-month decline in late January, signaling that an increase was on the way.
"It's probably worth noting that price is near record levels of oversold to on-chain demand/supply, and futures traders have halted their sell-down," statistician Willy Woo said, analyzing past RSI breakouts.
For wary hodlers, fear remains.
In terms of mood, the market has been cautious since its peak of $69,000 in November.
Even after the price increase, "fear" remained the dominant emotion among market participants, according to the Crypto Fear & Greed Index.
The Index, which employs a variety of indicators to generate a nominal emotion score ranging from 0 to 100, was 33 at the time of writing, having spent the majority of January below 25 — the "severe fear" zone.
Nonetheless, the last time the Index was this high was nearly six weeks ago, shortly after Christmas.
Crypto Fear & Greed Index (screenshot). Image SourceSource