Sentiment within the cryptocurrency investor community has turned positive once again, after a top coin recorded a slight price increase in the past 24 hours.
The Fear & Greed Index in the cryptocurrency market has risen to the 'Greed' level on Thursday, reaching 62 out of 100, recovering from the 'Neutral' state of the previous day. This change comes after several days of significant volatility, with Bitcoin dropping to $112,000 over the weekend, just weeks after hitting an all-time high of $123,100 in mid-July.
Bullish sentiment indicates the market expects stability
The return of the 'Greed' index coincides with Bitcoin's 1% increase in the last 24 hours, trading at $114,763.
This slight price increase, along with improvements in market sentiment, indicates that investors are viewing this modest rise as a sign of stability in the near future. At the same time, the on-chain analysis company Glassnode reported on Wednesday that profit-taking activity among short-term holders — those holding for less than 155 days — has 'cooled off.'
The broader cryptocurrency market is also trending upward. Ether recorded a 2.37% increase in the past 24 hours, trading at $3,664 at the time of publication. XRP also rose 2.14%, reaching $2.97, while Solana increased by 3.26%, trading at $167.38.
Analysts predict Bitcoin will break out positively
This increase in sentiment is reflected in analysts' comments on Thursday. Michael van de Poppe, founder of MN Trading Capital, shared on X that 'Bitcoin has returned to resistance levels and is consolidating here. This test could lead to a positive breakout.'
Cryptocurrency trader Galaxy noted that the last time Bitcoin experienced similar volatility was in November, before it surged from around $70,000 to $100,000 on December 5 during a month-long rally following Donald Trump's victory in the U.S. presidential election.
Trader Ted predicts that Bitcoin could soon reach a new high of $125,000, noting that this would trigger about $18 billion in liquidations.