- From the Bitcoin Rainbow Chart showed that investors could scoop more BTC cheaply.
- A deeper look at sentiment showed that investors might want to wait.
Bitcoin [BTC] Has dropped 6.5% since 28 March. BTC holders sold in the short term with a loss and the annualized Sharpe ratio showed that BTC-Risico-corrected returns decreased.
Combined with the news of the American rates from 2 April, sentiment about the cryptom markets was filled in.
Source: Blockchain Center
The Bitcoin Rainbow Chart Chart showed that BTC was “still cheap”. This in itself should not lead to long -term investors, because the leading crypto was still in a downward trend.
Perhaps the second half of 2025 might be nice for the bulls. Data showed that in the coming weeks will probably not be.
BTC: Fear dominates the markets again
Source: alternative.me
The anxiety and greed index was anxiety full of fear from the end of February. It did not exceed 50 marking in March, but made a series of higher lows.
Although the technical analysis of the fear index may not be as enlightening as on the price charts, the recent dive suggested to investors that have been worn-than-30-level, because it marked a new low point since mid-March.
The dive in market sentiment came when the wider stock market also deleted for a hit. The anxious sentiment would probably stimulate a larger sales pressure, which means that the prices are lower.
Source: BTC/USDT on TradingView
The 1-day BTC chart indicates a strong bearish front views in the short term. The 20DMA and 50DMA confirm the ongoing downward trend, because Bitcoin still has to establish a new higher high above $ 90k, while retaining its Bearish structure. Moreover, it has fallen under the local support zone of $ 82.5K.
Since February the BBV trending has been down. Although it stabilized in the second half of March, as a result of power relationships between buyers and sellers, this only offered a slender chance of bullish recovery.
Recent sales pressure has erased that hope and the BBV will probably reach a new low point in the coming days. If this happens, Bitcoin investors must prepare for a potential price decrease under $ 78k.
Although the Rainbow Chart recommends to buy, the current market sentiment and price trends can suggest that patience can produce better results. The downward trend remains, and until it reverses, bullish investors may have to wait for more favorable circumstances.
Disclaimer: The presented information does not form financial, investments, trade or other types of advice and is only the opinion of the writer