Sentiment breaks out from “extreme fear” along with Bitcoin price action as expectations call for only a modest correction before fresh gains.
Bitcoin (BTC) stayed higher on Oct. 2 after a “fantastic” break to the upside upended market sentiment.
Trader eyes $45,000 BTC price floor
Data from Cointelegraph Markets Pro and TradingView followed eerie calm on BTC/USD after Oct. 1’s sudden upside volatility saw $3,000 added in an hour.
The classic “short squeeze” saw no significant pushback into the weekend, with Bitcoin preserving levels above the August close.
For Cointelegraph contributor Michaël van de Poppe, it was now a question of what form a consolidation period could take in the coming days.
“If we want to get any corrective move at all, I think you don’t want to see it go that far down,” he warned in a YouTube update on Oct 1.
“I think the deepest you want to see it go is this level around $45,000.”
Van de Poppe nonetheless added that he favored bullish continuation as the conclusion to short-term price action rather than a deeper drop toward levels from earlier in the week.
A look at buy and sell levels on major exchange Binance meanwhile reveals incremental resistance in place beginning at $48,000.
“Extreme fear precedes financial opportunity”
Equally optimistic was trader and analyst Rekt Capital, who noted that BTC/USD had been printing higher lows for four months, all of which had seen strong buyer support despite the price rising each time.
Related: ‘Say hi to Uptober’ — Bitcoin price surges above $47K in minutes, liquidating $270M in shorts
#BTC has been forming Monthly Higher Lows for 4 months straight now
— Rekt Capital (@rektcapital) October 2, 2021
Referencing the Crypto Fear & Greed Index sentiment gauge, he noted that overall, fear ha once more left the market thanks to Oct. 1’s price action.
“Following BTC’s fantastic breakout move yesterday… Investors are no longer fearful towards Bitcoin,” he summarized.
“Extreme Fear precedes financial opportunity.”
The Fear & Greed Index was languishing in its “extreme fear” zone as recently as Sept. 30, its score since increasing from 20/100 to its current levels of 54/100, described as “neutral” sentiment.