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Crypto analysts have spotlighted the Bitcoin Fear and Greed Index as signalling a last chance to buy BTC – find out why in this article.
The Bitcoin scene is abuzz, with traders pointing to the current market as prime buying territory.
The rumors have data to back them up; as of April 24, Bitcoin’s OI-weighted funding rate has flipped to positive, signaling a surge in optimism for long-term bets, according to the folks over at CoinGlass.
British international bank Standard Chartered is stepping out on a limb with a gutsy prediction: Bitcoin will hit $150,000 by the close of 2024.
Other analysts, like Checkmate and Crypto Banter host Kyle Doops, agree, alleging recent volatility in the Bitcoin Fear and Greed Index as signs of a healthy market reset and hinting at a possible uptick or “liftoff” for Bitcoin.
Bitcoin’s value has dropped by 4.59% today, while altcoins are having a red massacre.
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Bitcoin is far from running out of steam. History suggests that Bitcoin’s OI-weighted funding rate spikes have coincided with big price moments, signaling a deep correlation between funding flows and bullish vibes.
Here’s what this could mean for Bitcoin’s price in 2024 and altcoin summer.
Bitcoin vs. Gold – A New Paradigm Due to Geopolitical Risk
Bitcoin’s fourth halving felt like a magic trick as BTC slashed its supply growth rate in half and became scarcer than gold.
According to Charles Edwards’s analyses from Capriole Investments and Glassnode, this propels Bitcoin to the zenith of value storage, outshining gold with a lower inflation rate—a historical first.
“Bitcoin’s days under $100K are numbered,” he told Coin Telegraph.
With the volatility of the Bitcoin Fear and Greed Index, two metrics signal that now might be Bitcoin’s golden hour in 2024:
- The Dance of the Funding Rate: From the high-flying 0.0714% to a grounded 0.0093%, the funding rate signals optimism for long-term investing. Market old-timers are nodding approvingly at the change.
- MVRV’s Lowdown: Market value to realized value offers a verdict whether we’re looking at Bitcoin through rose-colored glasses or if it’s genuinely a steal. With a current score of 2.32, tumbling since April’s start, it’s suggested that Bitcoin is at a “buy me now” price. Remember, over 3.5 is peak hype, below is bad news.
While the indicators show promise, their historical reliability may diminish in the face of rising complexity and diverse market participants in the crypto market.
The Lofty Predictions For Altcoins Playing Catch Up
So what about altcoins? With Bitcoin dominance high, here’s one metric that is telling us when we’ll see Altcoin Summer 2024.
The Gaussian Channel visually outlines price movements, using the normal distribution of prices to gauge trends and identify potential overbought or oversold conditions. Lately, this particular indicator has indicated a surge in altcoins.
The retest mentioned refers to the price dropping back to touch the top of the channel before continuing its upward trajectory — this behavior can reinforce the strength of the breakout.
Additionally, the tweet points out a buy signal on the “super trend” indicator, designed to follow the trend and doesn’t reverse until the trend reverses. Combined with the EMA 10 (a 10-period exponential moving average), which has been supporting the price, this could suggest a strong and enduring upward movement for altcoins.
FIND OUT: How to Buy Bitcoin in 2024
The Bottom Line: Believe the Bitcoin Fear and Greed Index?
Bitcoin’s price took a hit following the fourth block subsidy halving, dropping from all-time highs of $73,737 to $64,146.
Yet, Geoffrey Kendrick of Standard Chartered believes these are mere blips on the radar, suggesting Bitcoin will soar in 2024. Oh, that rhymes.
The Bitcoin Fear and Greed Index will likely continue to be volatile, but the structural drivers for Bitcoin and Ethereum will power them towards their predicted heights of $150,000 and $8,000, respectively.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
