Bitcoin has climbed back above $7K for the second time this month. While the first time, Bitcoin was unable to set a higher high, allowing for support above $7,000, this time it looks set to do just that. Since breaking above $7K, Bitcoin has continued upwards to reach the $7,200 resistance. If a correction does not come soon, the bulls are set to look for a higher resistance in around $7,500.
This is set to ensure that the bulls can find support above $7K if there is a correction.
Despite Bitcoin making strides in the last 24 hours and indeed since the start of the month, investors still have cold feet. According to the Fear and Greed Index, sentiments are still in the “Extreme Fear” zone. This means that investors are very cautious and could be expecting a dump.
For the last week, the index has been indicating 12, with anything below 100 being an extreme fear number. Above 100 is greedy. The 12 is a drop from last month’s 16.
The bearish sentiment is further backed by a poll we reported on showing over half of the crypto community expects the next 20% price movement to be on the downside.
Back Out or Double Down?
But as any credible analyst will tell you, when there is fear, this could offer the best buying opportunity. And when there is greed, that is time to sell.
So, while many are feeling inclined to sell, especially now that Bitcoin is up, maybe its time to double down. This especially because Bitcoin halving is now a month away which is a major bullish trigger. Also, the U.S payout cheques could be sent this month and part of this money could be headed to the crypto market.
The next few hours or days will be a great test to whether Bitcoin is set for a bullish month. If it can keep up the momentum and set a higher low ($7K), more gains are on the horizon and will be looking at the $8K highs in the long term. If it corrects and slumps below $7K, it will be evidence of bearish resilience and could force a test of previous lows ($6,500).
