Bitcoin Investors Remain Greedy Despite Low Momentum, Why?
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Bitcoin is still struggling to hold $28,000 and has been pushed below the support level again. But this has not deterred investors who continue to be very positive about the digital asset. This is evident in the fact that crypto investor sentiment remains firmly in the greed zone, which is in contrast to the struggling prices witnessed in the market.
Fear and greed index Stable in greed
The Fear and Greed index finally crossed over into greed territory about two weeks ago when Bitcoin had broken above $28,000 for the first time in nine months. There was cause for celebration as it signaled better times for digital and the index rebounded to 2021 levels.
However, despite the decline in the price of the cryptocurrency so far, the Fear & Greed Index has maintained its position in the area of greed. What this indicates is that the price drop has not affected investor sentiment and expectations that the price will continue to rise again.
Fear & Greed Index remains in the green | Source: alternative.me
The index currently stands at a score of 63, consistently maintaining green levels for over a week. It’s also a far cry from the neutral sentiment that rocked the market last month, and far from the extreme fear that 2023 started with.
Bitcoin remains bullish
Bitcoin has maintained bullish momentum through the end of March. The digital asset continues to maintain its position well above its 50-day and 100-day moving averages, all of which show that buyers are still in control of the market.
BTC has broken all resistance remaining at $28,000 and with increasing buying pressure, the major resistance for the cryptocurrency now lies just above the $28,900 level, with subsequent resistance at $30,000.
BTC finds its way above $28,000 once more | Source: BTUCSD on TradingView.com
On the back of this, there is now significant support for Bitcoin at $27,500 which was demonstrated in Thursday’s opening hours. As long as the bulls are able to hold this point, the chances of a downtrend from here are slim while the possibilities of a breakout are extremely high.
The decline in trading volume over the past 24 hours is a bit concerning, but is also understandable given that the market is entering the weekend which is a period of typically low liquidity. Despite this, some of the biggest moves for BTC have occurred over the course of a weekend, so this could also be bullish for the cryptocurrency.
BTC is still trending above $28,000 after regaining this level early on Friday. It is changing hands at a price of $28,113, but is still down 1.99% on the daily chart.