Fear of bitcoin investors; Analysts: Price fluctuations continue to increase

The feelings of bitcoin traders have been in the zone of “extreme fear” for several days, and the price fluctuates at certain intervals. Given recent market developments, analysts expect the price of bitcoin to fluctuate further.

According to Kevin Desk, the overall situation in the digital currency market on Friday fell for the second day in a row and bitcoin again managed to reach over $ 40,000. The price of bitcoin, which fell 2.9 percent on Thursday, peaked at $ 40,869 on Friday.

Currently, the digital currency is moving close to the support level of $ 40,000, which is higher than the bottom in the first quarter of 2022 (winter 1400). However, the trend in bitcoin prices signals for some traders.

Alex Kupcikevich, chief financial market analyst at FxPro, said:

Confirmation of the suspension of support of $ 40,000 may mean a possible price drop below the previous bottom of $ 38,000. Conversely, if bitcoin manages to break out of this downtrend and move up, the importance of this balanced uptrend will increase.

What does the feeling of
Bitcoin price chart in 4-hour view.

The Index of Fear and Greed is a popular tool provided by the Alternative.me website, which reflects the feelings of traders. On Saturday, April 16 (April 27), the index reached 22, which shows the fear of traders. It is worth mentioning that the level of fear of investors in the digital currency market has increased compared to the previous week, which was in the range of 37.

The index shows a number between 1 and 100, with the number 1 showing the strong fear of traders in the digital currency market, and the number 100 showing their strong greed. In other words, when the index of fear and greed approaches 1, traders sell, and when it is close to 100, traders buy.

What does the feeling of
Index of fear and greed for digital currencies on April 16 (April 27).

Analysts say the range of bitcoin may fluctuate further in the coming months.

Paul Robinson, a DailyFX strategist, said:

Bitcoin faced strong sales pressure in the fourth quarter of 2021, but in the first quarter of 2022 it went through a period in which there was no clear direction. The narrowing of the range of bitcoin price volatility over the last three months may further increase targeted price fluctuations in the short term. However, it should be noted that the range of fluctuations in financial assets increases over time and after periods of low volatility there are periods of high volatility. We must also take into account the fact that we are talking about bitcoin. Given these points, it can be said that fluctuations in this digital currency are likely to increase by mid-2022.

It is worth noting that in the history of the market of bitcoin and other digital currencies April (mid-April to mid-May) has always been a bullish.

Bitcoin investors are terrified; Analysts: Fluctuations in prices continue to appear, appeared for the first time on Digital Currency.

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