The sentiment index has fallen back into the fear zone, dropping 34 from neutral values of around 50 in the previous two days. Still, it will take increased volatility and a fall to extreme fear for the indicator to signal a ‘buy opportunity’ according to its design, which implies a potential downside of 4-5%.
Bitcoin volatility has increased since the end of Wednesday due to the reaction to the FOMC comments. The Fed reassured the markets that a rate cut in December is not a foregone conclusion. As a result, the first cryptocurrency is once again hoping for strong support at the 200-day average. In October, the 11th daily candle is touching this line.
Crypto News
Analyst Axel Adler Jr. anticipates a new Bitcoin rally after the Fed meeting. The growth of stablecoin reserves on Binance relative to Bitcoin reserves creates conditions for an upward trend reversal, according to CryptoQuant.
Glassnode takes a less favourable view of the situation, noting a significant decline in inflows into spot Bitcoin ETFs in the US.
American Bitcoin, co-founded by US President Donald Trump’s son Eric Trump, announced the purchase of 1,414 BTC for $163 million, bringing its total holdings to 3,865 BTC.
