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After a tough weekend that saw Bitcoin dip to around $61,500 and Ethereum to $2,890, the chatter has been mostly dark. Yet, this surge of FUD among traders may not be as bad as it sounds.
As markets start to bounce back, going against the crowd’s doomsday predictions, there is a lesson to be learned. When everyone is selling in a panic, it often sets the stage for a turnaround. This is where we are now – at a potential tipping point where the pessimism has gone so far that it might just flip the other way.
According to sentiment analysis, negative tendencies on the market could indicate a coming rebound, as the markets have a history of moving contrary to the crowd’s fears. The expectation is that this trend could hold up until the hype and excitement (FOMO) surrounding the halving event take center stage again, just as they did a few weeks ago.
On the price chart, Bitcoin and Ethereum have crucial levels to watch. For Bitcoin, the resistance to beat is around $67,000. If it manages to rise above this, it might signal a larger recovery. Ethereum faces resistance near $3,500 and has support at $2,700. If it holds above support and breaks past resistance, it could be a sign of a more sustained upswing.
While the current sentiment is in the dumps, history has shown that such sentiment extremes can precede market recoveries. The collective mood swings of investors, from fear to greed and back again, are part of the crypto industry.
Just as panic can spread quickly, so too can a recovery start – often when it is least expected. Keep an eye on those critical price levels.
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