Bitcoin price has held steady in the past few days, moving from this month’s low of $57,725 to the current $64,000. It has flipped a crucial resistance level into a support, and formed a bullish pattern, pointing to more gains as the Crypto Fear and Greed Index rises.
BTC price has stabilized in the past few days, helped by the moderate risk-on sentiment in the industry. The Crypto Fear and Greed Index has jumped from the extreme fear zone of 13 last month to 30 today, and it is still rising.
This is an important gauge that is created by looking at several data points like momentum, volatility, derivative market data, and other proprietary numbers. In most cases, Bitcoin and other cryptocurrencies start rising whenever the index moves to the extreme fear zone.
Bitcoin rose despite some major negative news in the industry. The most notable one is that Strategy, the biggest accumulator, has started selling its coins. It sold 32 coins earlier last month, and increased the selling last week.
It has now dumped coins worth over $216 million, and is in the process of dumping more in the coming months. Strategy is doing this to improve the cash section of its balance sheet, which will enable it to pay dividends.
The urgency to boost its cash reserves jumped after its preferred stocks like STRC, STRK, and STRF dropped below their par levels. In the aftermath, Strategy decided to have a two-year dividend cover to boost investor confidence.
The biggest risk is that many Strategy copycats may also decide to sell their coins in the near future. This would be a big event in the crypto industry since these companies owns over 1 million coins. They include popular companies like Tesla, SpaceX, Strive, Gemini, and Block.
Meanwhile, Bitcoin price is rising even as American investors restart selling their assets. Data shows that spot Bitcoin ETFs lost $95 million on Thursday after losing $84 million a day earlier. Before that, these funds had over $500 million in inflows.
The ongoing outflows could be a sign that these American investors expect the prices to remain under pressure in the near term.
Outflows jumped after the US and Iran restarted their war. The two sides have exchanged fire recently, with Trump saying that, in his view, the ceasefire agreement was over.
The risk, therefore, is that the two sides may continue fighting at a time when oil inventories are still low. Such a move would push oil prices higher. Brent and the WTI have jumped to $76 and $72, respectively.
Higher energy prices would push inflation higher, making it hard for the Fed to cut interest rates.
Bitcoin price chart | Source: TradingView
Technicals suggest that Bitcoin price may continue rising in the near term. It has moved slightly above the upper side of the falling wedge pattern. A wedge is made up of two descending and converging trendlines.
The coin has also formed a double-bottom-like pattern whose neckline is at $67,400. It jumped above the 25-day moving average. The two lines of the MACD indicator are attempting to cross the zero line.
Therefore, the coin will likely continue rising as bulls target the key resistance at $67,400. Moving above that level will point to more gains, towards $70,000. The bullish outlook will be confirmed if it drops below the key support of $59,000.