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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Does Sentiment Shifting Slowly Signal A Crypto Recovery Ahead?

Reynaldo Marquez
Reynaldo Marquez
2 years ago
2 mins read
Top 5 crypto

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The crypto market has lost momentum after the extended weekend in the United States. Bitcoin and other larger cryptocurrencies have been recording losses during today’s trading session and could continue to trend downside in the short term.

Related Reading | TA: Ethereum Regains Strength, Showing Early Signs of Fresh Rally

At the time of writing, the crypto total market cap stands at $860 billion with sideways movement over the past weeks. This metric has been trending to the downside since late 2021, but took a severe loss in April-May 2022, as seen in the chart below.

Crypto Bitcoin AR 1
The crypto total market cap trends to the downside on the 4-hour chart. Source: Tradingview

As a consequence, the general sentiment across the crypto market trended to the downside and recorded extreme fear levels on the Fear and Greed Index. The price of Bitcoin and other larger cryptocurrencies often finds a local bottom or top when the Index stands close to 10 or 80 respectively.

The crypto market did find a bottom in June when BTC’s price traded close to $17,000 and pushed the Fear and Greed Index to extreme levels. Since that time, the number one cryptocurrency has pushed the market slightly upwards and has been forming a new range between $18,600 and $21,000.

These levels stand as the major area of resistance along with $22,000. Market participants seem more positive on a probably break above these levels, according to a recent report from Arcane Research. The first stated the following on the shift in market sentiment over the past weeks:

The sentiment in the crypto market has been depressed for several months, but we’re seeing a slight improvement this week. After the Fear and Greed Index climbed to 19 yesterday, we’re at the highest point in two months. While we’re still comfortable in the “Extreme Fear” area, we’re now pushing towards the “Fear” area, and the market is slightly more optimistic (…).

Crypto Bitcoin BTC BTCUSD AR
Source: Arcane Research

Ready For More Crypto Downside?

The crypto total market cap and the performance of the altcoin market are bound to BTC, ETH, and larger cryptocurrencies. As NewsBTC has been reporting, the sector is currently impacted by macro-economic factors; rising inflation, and interests rates hikes by the U.S. Federal Reserve (FED).

These factors’ influence over the market must mitigate before the nascent asset class can decouple from traditional finances. In the meantime, any bullish momentum will remain susceptible.

Related Reading | Cardano Releases New Update On Testnet, How Will The Price Respond?

If the price of Bitcoin is unable to push above $22,000 soon, the market could see a decline in the Fear and Greed Index. Data from Material Indicators and their Trend Precognition Indicators suggest it is likely to see a re-test of lower levels. Via Twitter, the analysts wrote:

BTCUSDT and ETHUSDT were both rejected at the 21 Day Moving Average and now we see the Trend Precognition A1 Slope Line rolling over on the D chart indicating a short term loss of momentum.

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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