Cryptocurrencies advanced on Wednesday, lifting total market capitalization to about $2.25 trillion, even as broader sentiment gauges remained deeply cautious.
Key Takeaways:
- Total crypto market cap rose to $2.25 trillion, up roughly 2.6% on the day.
- Bitcoin traded near $65,000, gaining about 3% in 24 hours.
- The Fear & Greed Index remained at 11, in “extreme fear” territory.
- Altcoin Season Index at 37 indicates continued Bitcoin dominance.
Despite the recovery, the Fear & Greed Index stayed anchored at 11, firmly in “extreme fear” territory – a signal that investors remain wary of sustained downside risks. The Altcoin Season Index printed 37 out of 100, indicating Bitcoin continues to outperform most alternative tokens, a pattern typically associated with risk-off environments.
Bitcoin Stabilizes After Sharp Intraday Swings
On the hourly chart, Bitcoin consolidated around the $65,000 level after an earlier spike toward $66,300 was followed by a retracement to sub-$65,000 levels.
Technical indicators suggest momentum is stabilizing but not yet decisively bullish. The Relative Strength Index (14) hovered near 46, below its signal reading around 54, pointing to neutral-to-slightly bearish short-term momentum. Meanwhile, the MACD (12,26,9) remained below the zero line, with the MACD line at -8.05 and a positive histogram reading near 18.49, indicating waning downside pressure but no confirmed upside breakout.
Traders are watching the $64,800 zone as near-term support, while a sustained move above $65,600 could reopen the path toward the $66,000–$66,300 resistance band.
Ethereum, Solana Lead Major-Cap Gains
Ethereum rose about 3.6% on the day to trade near $1,891, while Solana outperformed with a gain of more than 6%, climbing toward $82. XRP added roughly 2.5%, though most major tokens remain lower on a seven-day basis.
Stablecoins Tether and USD Coin held close to their dollar pegs, underscoring ongoing demand for liquidity buffers amid volatility.
Structure Improves, But Caution Prevails
Average crypto RSI readings near 47 suggest the market is neither deeply oversold nor overbought. That neutral positioning, combined with persistent “extreme fear” sentiment, points to a fragile rebound rather than a confirmed trend reversal.
For now, Bitcoin’s ability to defend the $65,000 threshold may determine whether the broader market extends its recovery – or resumes the corrective phase that defined the past week.
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Source: https://coindoo.com/bitcoin-holds-65000-in-tentative-market-bounce/