30.12.202119:21 Forex Analysis & Reviews: Bitcoin market under "extreme fear"

Bitcoin managed to hold above the support level of 46,934.61, confirming it with a false breakdown. In the last days of the outgoing year, Michael Saylor of Microstrategy bought the bottom, adding 1,914 coins to the company's balance at an average price of $49,229 per bitcoin for a total of $94.2 million.

The level of fear is off scale

The Crypto Fear & Greed Index on Thursday shows that the market is experiencing "extreme fear" despite the fact that the main cryptocurrency has turned around locally.

According to the Crypto Fear & Greed Index, on December 30, traders' emotions are the most frightening in the 10 days since Bitcoin dropped to nearly $45,500. The index is currently at 22, reflecting "extreme fear." Bitcoin's recent drop from $52,000 has taken its toll on the index, with the valuation falling deeper than Wednesday's fear position by 27.

The Crypto Fear and Greed Index takes into account market sentiment, which refers to the emotional behavior of traders and investors in relation to a particular asset.

Local forecast for BTCUSD

The current situation looks good from a technical point of view. The rebound of the Bitcoin price up from the support of 46,934.61 creates prerequisites for growth in the sideways to the level of 51,697.58 (upper green dotted line).

Only the 47,848.69 horizontal is confusing, which the price has now rested on. If this level is confirmed as resistance, quotes may reverse. Therefore, we keep the 46,934.61 - 47,848.69 zone in focus. Consolidation below may be a signal for a deeper correction to $42,000, and its confirmation as support opens the way to $51,000.

But this is in the regular market, for now, it is worth making allowances for limited liquidity and a thin market. But when big capital returns after the holidays, analysts expect the main cryptocurrency to grow in the first half of 2022.