Following a challenging weekend in which Bitcoin dropped to about $61,500 and Ethereum to $2,890, there hasn’t been much conversation. However, this FUD wave among traders might not be as severe as it seems.
A lesson is to be learnt when markets begin to recover, defying the consensus’s ominous forecasts. It frequently creates the conditions for a reversal when everyone is panicking and selling. We are currently at a possible tipping point when the pessimism has gotten so bad that it might suddenly turn around.
Sentiment study suggests that the market’s unfavourable trends may portend an impending recovery because historically, markets have moved in the opposite direction of popular expectations. It is anticipated that this pattern will continue until the excitement and anticipation (FOMO) around the upcoming event return to the forefront, as they did a few weeks prior.
Ethereum and Bitcoin have important levels to keep an eye on on the price chart. At over $67,000, Bitcoin’s resistance is something to overcome. Should it surpass this level, it may indicate a more significant rebound. Ethereum has support around $2,700 and resistance at $3,500. It may indicate the start of a longer-lasting upswing if it stays above support and breaks through resistance.
Despite the dire state of affairs right now, history has proven that strong sentiments sometimes precede market recovery. The cryptocurrency sector is influenced by investors’ aggregate mood swings, which range from fear to greed and back again.
Similar to how fear may spread swiftly, recovery can also happen suddenly and frequently. Pay attention to those crucial pricing points.
