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Breaking News: Bitcoin Price To Recover $100,000: BTIG Cites Key Reasons For Optimism
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Breaking News: Bitcoin Price To Recover $100,000: BTIG Cites Key Reasons For Optimism

Neverending Nightmare Fear Cycle In Crypto Breaks, What Happens Now?

Reynaldo Marquez
Reynaldo Marquez
Last Updated: July 19, 2022 4:18 pm
3 mins read
Crypto BTC BTCUSDT ETHUSDT

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The crypto market pushes upwards as Bitcoin, Ethereum, and other larger cryptocurrencies are turning critical resistance points into support. ETH’s price currently leads the market recovery as it records a 40% profit in the past seven days trading at $1,500.

Related Reading | Solana Adds 70% More Shine – Can SOL Keep The Light Coming?

On the other hand, BTC’s price is more conservative but has begun recording important gains. At the time of writing, BTC trades at $22,800 with a 14% profit over the same period and is on track to securing further gains.

Ethereum ETHUSDT Crypto
ETH’s price with minor gains on the 4-hour chart. Source: ETHUSDT Tradingview

As a result of the bullish momentum, the Fear and Greed Index has broken out of its 74-day streak moving to extreme fear levels, according to a report from Arcane Research. Again, this confirms the profitability of taking long positions when this Index consolidates around those levels.

As seen in the chart below, the Crypto Fear and Greed Index has returned to its Q1 2022 levels. This indicator plummeted in May when the price of Bitcoin broke below the $30,000 barrier and into a multi-year low at around $17,500.

Crypto BTC BTCUSDT ETHUSDT AR 1
Source: Arcane Research

Despite the current bullish momentum, the Index is still gravitating in fear territory suggesting BTC, ETH, and the crypto market will need to follow the Index and reclaim its Q1 2022 prices before more market participants turn more optimistic. Arcane Research noted the following:

While the sentiment is improving, the Fear and Greed Index remains deep in the fearful territory, and other viable sentiment indicators from the derivatives market suggest that market participants still exercise caution.

The chart above suggests the sector is at a turning point as it pushes above 30 in the Crypto Fear and Greed Index. A break above these levels could confirm a change in the current market trend.

Why The Crypto Market Could Seize This Window Of Opportunity

In the short term, the crypto market has a chance to extend the bullish momentum. The factors pushing BTC and ETH into yearly lows seem to be mitigating.

These include the U.S. Federal Reserve (Fed) trying to stop inflation by hiking interest rates. The financial institution has entered a blackout period, meaning its representatives won’t make public statements until the next Federal Open Market Committee (FOMC) meeting.

Inflation, as measured by the Consumer Price Index (CPI), seems poised to slow down. As NewsBTC reported, this metric experienced a 40-year hike but might take a step back as oil, copper, and others trend to the downside. The CPI print relies heavily on the price of commodities.

Related Reading | Polygon Price Explodes By 60% – Is MATIC Nearing $1 Target?

The crypto market is also apparently receiving support from traditional equities. The two sectors have been correlated since the start of the downtrend, and thus BTC and other cryptocurrencies might benefit from stock bouncing to previous levels.

#Stocks keep on pushing up, bringing #Bitcoin with it. When markets correct 70 to 90% you load up and trade the risk. Did it in March 2020 and been doing it again. Even just a relief rally is huge profits at this point.

— IncomeSharks (@IncomeSharks) July 19, 2022

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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

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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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