Bitcoin (BTC), which was able to hold its value higher on October 2, after a “fantastic”, upside-upended market sentiment.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Trader eyes $45,000 BTC price floor
Data from TradingView and Cointelegraph Markets Pro showed an eerie calm in BTC/USD following Friday’s sudden upward volatility that saw $3,000 added in one hour.
Bitcoin’s August close was the classic “short squeeze”, which saw little resistance.
Michael van de Poppe (Cointelegraph contributor) was now trying to figure out what shape a consolidation period might take over the next few days.
In a YouTube video update, he stated that “if we want any corrective action at all, then I think it’s not necessary to see it go so far down.”
“I believe the level at which you would like to see it go is around $45,000.”
Van de Poppe said that he preferred bullish continuation to conclude short-term price action, rather than a deeper fall towards earlier levels in the week.
An examination of the buy and sell levels on Binance, a major exchange, revealed that there was incremental resistance starting at $48,000.
BTC/USD buy/sell levels (Binance) Oct. 2. Source: Material Indicators
“Extreme fear precedes financial opportunity”
Rekt Capital, a trader and analyst, was equally optimistic, noting that BTC/USD has been printing higher lows over the past four months. All of these had seen strong buyer support, despite the price increasing each month.
Related: “Say hi To Uptober” — Bitcoin price rises to $47K in just minutes, liquidating $270M shorts
#BTC is forming Monthly Higher Lows for four months straight now. Month to month, investors have been happy to buy $BTC on Retraces at Higher and Higher Prices#Crypto #Bitcoin
— Rekt Capital (@rektcapital) October 2, 2021
Referencing the Crypto Fear & Greed Index sentiment gauge, he observed that overall fear had left the market due to Friday’s price action.
He summarized, “Following BTC’s amazing breakout move yesterday… Investors no longer fear Bitcoin.”
“Extreme Fear precedes financial opportunity.”
Fear and Greed were languishing within its “extreme fear zone” as of Thursday. Its score has increased from 20/100 levels to the current level of 54/100. This is considered neutral for sentiment.
As of Oct. 2, the Crypto Fear & Greed Index has been updated. Alternative.me