The Crypto Fear and Greed Index has indicated that Bitcoin (BTC) has been out of the Fear zone for 11 consecutive days, the longest stretch since March of last year.
The sentiment towards Bitcoin is currently in the Greed zone (a score of 61), which happens to be the highest it has been since November 16, 2021, when the price was around $65,000 during the peak of the bull market.
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<source: alternative.me>
Bitcoin reached its yearly high of $23,955 on January 29 at 8:10 pm UTC and has since declined slightly to $23,625.
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<source: tradingview, binance>
Despite the recent strong performance of Bitcoin, there is still disagreement among market participants about whether this is a temporary rise or a potential bull run. However, the recent price increase has brought many Bitcoin holders into profitability.
64% of Bitcoin investors have become profitable, according to data from IntoTheBlock.
Glassnode, an on-chain analytics platform, also reports that those who bought BTC in 2019 are now back in profit on average. The average purchase price for first-time buyers in 2019 was $21,800, so they have an average profit of 9% based on the January 29th price of $23,955.
A poll conducted on January 29 by CoinGecko has shown that a majority of the 3,725 voters believe that Bitcoin will surpass the $25,000 mark this week. Out of the voters, 57.7% have faith in Bitcoin reaching the mentioned price, while only 21.2% think that it may experience a pullback below $22,000.
On January 29, Dr Jeff Ross, the founder and CEO of Vailshire Capital, took to Twitter to share his technical analysis and suggested that a short-term price increase towards $25,000 may be possible for Bitcoin.
"The strength of Bitcoin on the 4-hour charts continues to be impressive. While price action has trended sideways for over a week, short term indicators (MACD, RSI) have once again reset and are now ramping higher. A price surge to ~$25k is probable," he wrote.
However, other analysts have advised investors to temper their expectations and not get too carried away with the current excitement in the market.
Joe Burnett, the head analyst at Blockware, a Bitcoin mining company, tweeted on January 29 that Bitcoin will not reach its all-time high of $69,000 until after the upcoming halving event, estimated to occur in March 2024.
Lyn Alden, a macroeconomist and investment advisor, recently warned that the market might face significant risks in the second half of 2023 due to potentially unstable liquidity conditions.
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