Bit-comment: Bitcoin griped between important levels

Bitcoin managed to bounce back to $8,100 after the drop to $7,700, while the entire market capitalization of the crypto market rose by $15bn over the week. The Bitcoin Greed and Fear Index rose from last month’s Extreme Fear to Neutral at 49, reflecting positive market dynamics. The market found support in the form of a 50-day average, as slight decline below this level increased the purchasing interest of the bulls. At the same time, a more important level – 200-day average – is now above the current price, acting as a pressure factor in the upward jumps.

As the volume of algorithmic trading increases on the part of institutional investors, we could increasingly frequently see bots triggered sharp jumps in either side based on technical indicators and news. On the one hand, this will significantly limit the prospects for sudden lasting growth, while on the other hand, panic sentiment may also be restrained.

The FxPro Analyst Team