‘Extreme fear’ grips Bitcoin price, but analysts point to signs of a potential reversal

cointelegraph.com:

The cryptocurrency market settled into a holding pattern on May 25 after traders opted to sit on the sidelines ahead of the midday Federal Open Market Committee (FOMC) meeting where the Federal Reserve signaled that it intends to continue on its path of raising interest rates. According to data from Alternative.me, the Fear and Greed Index seeing its longest run of extreme fear since the market crash in Mach 2020.

Data from Cointelegraph Markets Pro and TradingView shows that the price action for Bitcoin (BTC) has continued to compress into an increasingly narrow trading range, but technical analysis indicators are not providing much insight on what direction a possible breakout could take.

Here’s a look at what analysts think could come next for Bitcoin price.

According to market analyst Michaël van de Poppe, "#Bitcoin broke through $29.4K and ran towards the next resistance zone. If we hold $29.4K, we'll be good towards $32.8K. Finally.”

One interesting thing to note at these price levels is that while the predominant sentiment is that of extreme fear, on-chain intelligence firm Santiment pointed out that whale wallets have taken this as an opportunity to accumulate some well-priced BTC.

Santiment said,

A macro perspective on how Bitcoin performs following the appearance of a death cross was offered by pseudonymous Twitter user Rekt Capital, who posted the following chart outlining what to expect if the “historical price tendencies relating to the #BTC Death Cross repeat [...]”

Rekt Capital said,

Related: Scott Minerd says Bitcoin price will drop to $8K, but technical analysis says otherwise

The importance of the current price level for Bitcoin was touched upon by economist Caleb Franzen, who posted the following chart