#BTCRebound #BTC $BTC

Bitcoin surpasses USD 88,000 as sentiment improves.

The price of bitcoin (BTC) reached 88,000 dollars (USD) this Monday for the first time in three weeks. Specifically, the currency had not reached this price since early April.

Over the last two weeks, the sentiment in the cryptocurrency market has been improving, contributing to the price increase. However, it still remains within a state of fear. Since bitcoin hit USD 76,000 two weeks ago, its lowest in four months, the fear and greed index from the CoinMarketCap explorer has been rising. Still, it continues to show fear in the market. During this period, it went from 15 to 34 points.

This index scores on a scale of 0 to 100 the sentiment of the cryptocurrency market, based on data from price, volatility, derivatives, stablecoins, and other aspects. Levels below 40 indicate fear, and scores below 20 are in extreme levels. Conversely, those above 60 indicate greed, and those above 80 are in extreme intensity.

According to this metric, if there is extreme greed, it could be a signal to consider selling assets, while extreme fear could mean a buying opportunity. That’s why, although it is not an infallible technique, some investors use sentiment polling as part of a contrarian investment strategy.

In correlation with this theory, the price of bitcoin experienced a surge after reaching extreme fear sentiment, as shown in the following chart. This behavior keeps hopes alive that a bearish cycle has not yet begun, despite the pullback it has experienced since its all-time high.