The crypto market is at an inflection point, with various factors influencing the market’s trajectory. Crypto analyst Michael van de Poppe notes that altcoins are bleeding, while Bitcoin is still consolidating around its highs.
These factors have prompted investors to rotate their money from altcoins towards Bitcoin amid fears for tomorrow’s FOMC meeting. Nonetheless, the expert advises investors to stay relatively calm and wait for obvious opportunities to arise.
Crypto Fear and Greed Index: What does it indicate?
The Crypto Fear and Greed Index aims to numerically present the current emotions and sentiments towards Bitcoin and the cryptocurrency market, with the highest score being 100. The latest update of the index showed a score of 68, placing it firmly within the “Greed” territory. The last time the index recorded a score above 66 was on November 16, 2021, just days after Bitcoin’s all-time high of over $69,000 was recorded on November 10, 2021, according to Coingecko.
Bitcoin Consolidates Around Highs Amid FOMC Meeting
Bitcoin lost momentum on Monday, teeter-tottering above and below $28,000 as investors seemed ready to hunker down in advance of the U.S. central bank’s next interest rate decision on Wednesday. The largest cryptocurrency by market capitalization was recently trading at about $27,745, down roughly a percentage point from 24 hours ago.
Early Monday (UTC), Bitcoin had climbed above $28,400 just hours after the U.S. Federal Reserve announced it had teamed up with five other major central banks to ensure a steady flow of the U.S. dollar, a dominant reserve currency, in the global financial system.
Bitcoin has been consolidating around its highs recently, with the cryptocurrency’s price standing at $28,299 at the time of writing. This marks a rise of more than 17% in the span of seven days, and Bitcoin is nearing the critical resistance at $28,600. Flipping the same into a support floor will prepare Bitcoin for a rise to $30,000. The last time Bitcoin was at this price was nine months ago, in June 2022.
Bullish Market Sentiments For Bitcoin
Bitcoin’s historical price performance confirms that a hard limit on total supply and seamless global usability is critical to becoming a store of value. Data from Blockchain.com shows that Bitcoiners enjoyed 88.50% of profitable days relative to the current market price at the time of writing.
Sentiment around Bitcoin and the cryptocurrency market remains bullish since the collapse of Silicon Valley Bank and the resulting fallout in the traditional financial system. With the crypto market at a crucial inflection point, it remains to be seen what direction it will take in the near future.
Source: https://coinpedia.org/altcoin/altcoins-bleed-while-bitcoin-price-consolidates-what-to-expect-ahead-of-fomc-meeting/