Even though the value of bitcoin exceeds $30.5K, the Fear & Greed Indicator dropped to its lowest level since March 2020
It’s déjà vu for BTC and the economic mood, as circumstances mirror the following days of the March 2020 COVID-19 fall.
Bitcoin (BTC) rose to $30,500 on May 17 in the hopes of preventing a repeat of 2017 peaks.
‘Absolutely improbable’ testing for $20,000
BTC/USD climbed following the weekly end, according to information from Cointelegraph Commodities Pro and TradingView, to potentially on the approach of $30,000.
The duo had yet to settle on a substantial or upwards falling path in an inter-zone, and turbulence had abated into the coming work week.
Concerns that a significant correction could push it under last week’s ten-month decline prompted renowned researcher Credible Bitcoin to give a more upbeat option. According to precedent, “The case for 13K-14K $BTC is based on the idea that previous significant selloffs have resulted in 80% falls from the peak,” he said.
“It’s the same presumption that folks had at 30k in June ’21, when we gathered to a higher ATH of 65K three months after.”
Backup preparations seem to be in plan beforehand for such a scenario, with MicroStrategy – the firm with the biggest corporate BTC budget — even preparing to purchase supplies to halt the collapse, initially disclosed.
Reputable Cryptocurrency was equally cautious when questioned if BTC/USD may replicate the decline from its 2019 peaks around $14,000 to the $3,600 bottom during March 2020 COVID-19 collapse.
“I hadn’t expected that.” Is that even feasible? Yes, but as I’ve already stated, a test of earlier cyclical peaks has never occurred previously, so I believe it’s quite improbable, “he replied.
It was an issue of the US dollars moderating its bullish trend against other fiat money, according to Cointelegraph writer Michal van de Poppe, to allow risky commodities some room to maneuver.
He predicted that the US greenback (DXY) will fall from its twenty-year peak of 105 levels.
“Given the realities of the $DXY, I believe we will proceed with this situation.” The peaks have been scoured for volatility, anticipating we’ll see a correction movement. On May 16, he tweeted, “We’ve dropped 103.7 points and I believe we’ll see further downturn here -> risk-on commodities are up.”
The mood recalls that of March 2020.
However, investor confidence data echoed the general view in cryptocurrency – that something might occur today, with a strong bearish tilt.
Around May 17, the Bitcoin Fear & Greed Indicator, a cross-market attitude indicator, fell to 8/100, it is the biggest drop because March 28, 2020 – two weeks just after the Coronavirus curfew slump.
