On the 5th of June, the fear and greed indicator revealed that Bitcoin traders are still highly fearful. The F&G value was at 10%, with the price of Bitcoin slightly below $30,000 at the time.
Notably, today’s market situation is similar to that experienced last June. Bitcoin dumped heavily in May 2021, and in the opening days of June, Bitcoin traded for around $35000. Intense fear set in, and Bitcoin went down to $29K. The market recovered that same month, and the three following months were bullish.
Bitcoin Market Outlook
The fear and greed index value has appreciated in the last 24 hours. Bitcoin’s F&G value is currently around 13%, and the crypto asset trades presently at $31,400. Although we are still in the range of extreme fear, a 5% increase in Bitcoin’s value is enough temporary relief for many traders.
Bitcoin has been bearish for a significant part of this year. The crypto asset looked to be heading towards the highly anticipated $100K milestone late last year, particularly in November. However, Bitcoin broke the hearts of many investors when it tumbled from 69K to 38K in three months.
Since January, it has been decline after decline for Bitcoin, and billions of dollars have been wiped from the cryptocurrency market. History has shown, though, that no fall lasts forever for BTC. Investors will be hoping for recovery this month, and maybe Bitcoin’s move from $29K to $31K will boost investors’ confidence.
Several leading cryptocurrencies have gained significant volume and value in the past day. Ethereum has increased by 6%, and Cardano and Solana have also bounced up 10% and 11% respectively. While the green candles can be relieving, traders and analysts know that the market still has a bearish structure. However, we cannot expect a bullish rally yet until significant resistance levels are broken.