Crypto market sentiment has shifted back to bullish after a slight uptick in the prices of major cryptocurrencies over the past 24 hours.
On Thursday, the Crypto Fear & Greed Index climbed to a score of 62 out of 100, indicating “Greed,” after dipping into the “Neutral” zone the previous day. The rebound comes after a turbulent few days in the market, during which Bitcoin dropped to $112,000 over the weekend—just weeks after reaching an all-time high of $123,100 in mid-July.
Rise in Sentiment Signals Market’s Expectation of Stability
The index’s return to “Greed” came as Bitcoin rose 1% over the past 24 hours, trading at $114,298, according to Nansen.
The slight uptick in prices, combined with the rise in market sentiment, suggests that investors are interpreting the modest gains as a sign of short-term stability.
On-chain analytics firm Glassnode reported Wednesday that profit-taking activity among Bitcoin Short-Term Holders — those holding the asset for less than 155 days — has “cooled off.”
The broader crypto market also saw upward movement. Ether rose 2.37% over the past 24 hours to $3,664 at the time of writing, while XRP gained 2.14% to reach $2.97, and Solana climbed 3.26% to $167.38.
Analysts Predict “Bullish Breakout” Ahead for Bitcoin
The rise in market sentiment was reflected in analysts’ outlooks on Thursday. Michael van de Poppe, founder of MN Trading Capital, noted on X that “Bitcoin is back to resistance and consolidating here. This test should likely lead to a bullish breakout.”
Crypto trader Galaxy pointed out that the last time Bitcoin experienced similar volatility was in November, just before it surged from around $70,000 to $100,000 by December 5, in a month-long rally following Donald Trump’s U.S. presidential election victory.
Meanwhile, trader Ted predicted that Bitcoin could soon hit a new high of $125,000, adding that such a move could trigger up to $18 billion in liquidations.
