Bitcoin price is set to remain under pressure for the remainder of the year and into the new year. This is largely due to concerns over the health of the global economy. In the ensuing sessions, it may record subtle movements as the holiday season yields low volatility.
Crypto fear & greed index
In addition to the major driving factors, the crypto fear & greed index is a crucial tool in evaluating the performance of the industry. Notably, the index has been below the neutral level of 50 since the beginning of April 2022. The closer the figure is to zero, the higher the level of fear and risk aversion among crypto investors.
A look at the bitcoin price chart highlights the correlation between the fear & greed index and the cryptocurrency’s performance. In early April when the index was on the greed end of the spectrum, BTC/USD was at its year-to-date high at $48,258.02. Fast forward to the past few months when fear has been the main emotion driving the crypto market.
As at the time, the fear & greed index is at a fear level of 29. In coming weeks, concerns over a global recession and the overall aversion of risk assets will likely continue to weigh on bitcoin price. The Fed’s position regarding its monetary policy will also be at play.
Bitcoin price prediction
As the year comes to an end, bitcoin price and the broader crypto industry will likely be subject to low volatility. This as investors shift their focus on the festivities and avoid placing huge bets in the financial markets.
As such, I expect BTC/USD to remain range-bound in the ensuing sessions. It will likely remain within the broader range of $16,000 and $18,000. More specifically, the support zone of 16,366.95 and resistance level of 17,266.98 will be worth watching in the short term.