Bitcoin (BTC) held over $41,000 over the weekend after a late rally on Friday pushed the largest cryptocurrency to two-week highs.
BTC/USD 1 day light chart (bit tick). Source: Trading View
“The only good bear is a dead bear”
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD maintains gains that have recently recovered on Saturday, with a focus on the pair’s relationship to stock markets.
Analysts have highlighted the $39,600 area as a key line to cross and reverse to new support to enable further gains. In this case, this was not a problem for the bulls, as Bitcoin “rips” in seconds as it neared $40K to continue rising.
Among the newfound strength, the mood was strikingly better than it had been in recent days or weeks.
Popular analyst Credible Crypto compared the current action to the fourth quarter of 2020, when Bitcoin challenged $12,000 before hitting a three-year high.
“The only good bear is a dead bear,” said trader and analyst Bentoshi, as the market continued to climb to local highs of $42,000.
Others were less convinced of the sustainability of the current move, as data showed a large sell-off that started when the $40K re-emerged.
As Cointelegraph reported, there were already signs of a slight increase expected, thanks in large part to the time-tested RSI that broke out of a two-month downtrend in late January.
“We are likely to mention that the price is at historical oversold levels in terms of chain supply/demand and futures traders have stopped short,” commented statistician Willie Wu, comparing the RSI outbreaks.
Fear continues for careful scammers
In terms of sentiment, the cautious sentiment that prevailed in the market after the November peak remained at $69,000.
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According to the Crypto Fear & Greed Index, “fear” remained prevalent among market participants even after the price surge.
The index, which uses a combination of factors to derive a nominal sentiment score from 0 to 100, stands at 33 at the time of writing, having spent most of January below 25 — in the “extreme fear” zone.
However, the last time the index reached that high was about six weeks ago, just after Christmas.