This week, Bitcoin prices were stuck in a tough range this week as forming pennant patterns and crypto horror and greedy indexes point to rebound.
summary
- Bitcoin Price has formed a bullish pennant pattern on its daily charts.
- The cipher’s fear and greedy index remain in the gear zone.
- Technical shows a surge in the price of Bitcoin at the end.
Bitcoin (BTC) has remained within a narrow range since July 14 when it was pulled back after hitting a record high of $123,200.
The Crypto Fear and Greed Index is 63
The closely watched gauge shows that Crypto investors are still greedy despite the continuous pullback in the Altcoin market. The Crypto Fear and Greed Index remains in the greedy zone since the beginning of the year at 71.
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This index is inspired by a similar index introduced by CNN Money. We’ll explore five key metrics to measure market sentiment in the cryptocurrency industry. For example, look at the price momentum of the top 10 coins except Stablecoins and how they work.
Other metrics are Bitcoin and Ethereum volatility, derivatives market and market composition. Then, use CoinMarketCap’s own data to assess social media sentiment. In most cases, cryptocurrencies work well if there is greed in the market.
Crypto horror and greedy index | Source: CoinMarketCap
CNN Money’s fear and greedy index also remains in the green zone of 68. This greed is driven by stock price strength, stock price range, and put-and-call options in the extreme greed zone.
The two fear and greed gauges show a final Bitcoin price rebound, potentially following the Federal Reserve rate decision. The bullish case is based on a continuous accumulation by institutional investors as the ETF inflow continues.
Bitcoin price technology analysis
Bitcoin Price Chart | Source: crypto.news
According to technical analysis, Bitcoin prices are still in a tight range this week. As a result, the three rows of Bollinger bands became narrower. This is a sign of volatility depletion. In most cases, this performance is usually squeezed in either direction.
The squeeze could be upside down as the coin formed a bullish pennant pattern. This pattern consists of vertical lines that resemble a triangle that is symmetrical to a flagpole.
This pattern of flagpole is about 20%. If you measure the same distance from a potential breakout point, the surge is up to $143,550.
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