Market sentiment remains stable as Bitcoin targets $24,000

Bitcoin has remained flat over the weekend. The cryptocurrency had been able to break the $24,000 mark last week, but had gone down not long after. However, this pullback has not had too much of a negative impact on sentiment towards the digital asset. As bitcoin has started up again, market sentiment has been incredibly strong.

Bitcoin goes for $24,000

The opening of the new week saw bitcoin start below $24,000 in the morning hours on Monday. This quickly changed with a rally on a 6-hour basis that saw bitcoin increase in value to more than $500. This helped it regain this coveted point again, putting it firmly above the 50-day moving average.

Now, the 50-day MA has always been an important technical level for bitcoin. It was an indication of the crash that rocked the market two months ago and the bear market trend that caused it. Since the digital asset has now beaten this point, it has now converted the bearish indicators into bullish ones. It has also resulted in a reversal of the selling pressure in the market. Now, as buying pressure increases, the value of bitcoin is expected to grow.

The recent recovery has now moved the support level for bitcoin sufficiently. The latest move shows that there is now significant support for BTC at $23,500, which served as a rejection point. The resistance for bitcoin is now at $24,500, a level that bitcoin has failed to break since the crash.

BTC price exceeds $24,000 | Source: BTCUSD on TradingView.com

Sentiment remains positive

Sentiment in the crypto market hasn’t been the best in recent months, but there has been a notable uptick during this time. When the market crash happened back in June, sentiment had plunged well into the extreme fear zone, preventing investors from actually making any meaningful moves in the market.

However, with the change in the price of bitcoin, the market sentiment has started to change. It had grown into fear territory and now has a score of 30 on the Fear & Greed Index. This shows a stable sentiment in the market, which is beginning to skew more towards the positive.

With this return of faith in the market has come more investment. Currency flows for the past week show that investors are starting to accumulate the coin, especially among smaller investors, with the number of addresses with at least 1 BTC reaching a new all-time high of 892,803 on Monday.

Market sentiment still has a long way to go to fully move out of fear territory. However, if bitcoin is able to make its mark and break through $25,000, sentiment is expected to turn bullish very quickly.

Featured image from Coindesk, chart from TradingView.com

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