Bitcoin price continues to find support in th eimproved risk sentiment amid hopes that the Fed will further ease on its interest rate hikes in coming months. Even though, it has been range-bound for about a week now as traders still bear concerns over the banking crisis and fears that the global economy may be headed into a recession.
Fundamentals
The improved market sentiment continues to boost bitcoin price, even though the crypto has been range-bound for about a week now. The crypto fear & greed index, which is a major measure of the mood among crypto traders, has been at the greed end of the spectrum in recent sessions. Compared to Thursday’s greed level of 57, the index has risen further to 61 on Friday.
Amid this risk-on mood, the global crypto market cap has held steady above the crucial zone of $1 trillion. As at the time of writing,it was up by 1.425 over the past 24 hours at $1.18 trillion. Granted, the total market volume dropped by 16.73%. More specifically, Bitcoin’s trading volume was down by 25.17% while its market cap rose by 1.52% over a span of 24 hours.
Even with the improved market sentiment, traders remain cautious about the health of the US and global economy. Amid the banking crisis, concerns that the global economy may be moving towards a recession is largely behind the recent range-bound trading.
Granted, hopes that the Fed will further ease on its interest rate hikes has boosted cryptocurrencies and other risk assets like the US stock market. As has been the case in the past, cryptocurrencies tend to move concurrently to US stocks.
Bitcoin price prediction
Over the past two weeks, BTC/USD has rallied by about 45%. This is after dropping to a two-month low at 19,624.47.
Notably, it has been range-bound for about a week now. Even so, it continues to trade above the 25 and 50-day exponential moving averages as seen on its daily chart.
While I remain bullish on bitcoin price, range-bound trading may continue in the ensuing sessions. More specifically, the range between 26,550.49 and 29,251.64 will be worth watching.
The attraction of additional buyers may have the crypto rallying further towards its next target at 30,775.36. Even with the probable pullback past the aforementioned range, I expect 25,303.81, which is along the 25-day EMA, to remain a steady support zone for bitcoin price in the short term.
