Bitcoin has been rallying for the last three days and continues to maintain significant momentum. After the digital asset crossed the $30,000 resistance, there was speculation that bulls have finally run out of steam, so the price was expected to correct downward. However, BTC’s current levels combined with the crypto investor sentiment suggest that there could be more runway for the digital asset.
Bitcoin Fear & Greed Index Remains Firmly In Greed
Presently, the Bitcoin Fear & Greed Index is at one of the highest levels that it has been in the last year. After a long stretch in the neutral and fear territory, Bitcoin has finally moved back once more into the greed territory, signaling positive sentiment from investors.
The index is currently sitting at a score of 65, continuing Thursday’s bullish sentiment. It is now almost 20 points above its last week’s cumulative value of 47 and this shows the genuine jump in investor sentiment going from fearful to greedy.
Fear & Greed Index returns to greed as investor sentiment recovers | Source: alternative.me
The last time that the index was this high was back in April when Bitcoin’s price broke the $31,000 level for the first time in 2023. So it is possible that the current rally could continue on with time given that the rally that led to BTC climbing above $31,000 in April lasted for about a month.
As of now, the crypto market has been rallying for only about two days, so it is too early for exhaustion on the part of buyers. With more investors feeling greedy and rushing to the market to take advantage of the recovery, they will end up pushing the price even higher.
Bitcoin At $35,000 Is Possible
The crypto market rally is being propelled forward by the entrance of institutional investors into the space. This includes the like of BlackRock and WisdomTree filing for Bitcoin ETFs. Now, the response from the Securities and Exchange Commission (SEC) is not expected for another couple of months, which leaves room for speculation to continue to drive up the price of the assets.
This positive sentiment surrounding the ETF filings can push the price farther up to the $35,000 level, which is the next major resistance for BTC. Once this happens, then $40,000 is the next level to beat, at which point, exhaustion and correction back downwards can be expected.
BTC price reclaims $30,000 | Source: BTCUSD on TradingView.com
If the ETFs do get approved this year, then BTC’s price will likely rally to its previous all-time high of $69,000 as around $20 billion in institutional investor funding is expected to flow into the market initially. As time goes on, this inflow will only continue to rise, propping up the price of the digital asset.
At the time of writing, BTC has already reclaimed the $30,000 level once more as bulls continue to maintain dominance. According to data from Coinmarketcap, the cryptocurrency is seeing 17.45% gains in the last week, bringing its market cap to $582 billion.