Bitcoin Stabilizes Into the Weekend Amid Mixed Market Sentiment
Bitcoin (BTC) has stabilized as we head into the weekend, yet market sentiment remains far from relaxed about its near-term outlook. Increasingly, BTC price forecasts are featuring sub-$100,000 levels, reflecting cautiousness among traders and analysts.
Technical Indicators Show Signs of Potential Rebound
The daily Relative Strength Index (RSI) has dropped to its lowest point since April, a period when BTC/USD fell to $75,000. Meanwhile, the four-hour chart displays a clear bullish divergence developing: as the price formed new local lows, the RSI established a higher low. This pattern suggests that selling pressure is waning below the $110,000 mark.
This divergence has sparked a debate in the market, with some experts highlighting a conflict between bullish leading indicators and the prevailing bearish sentiment among traders.
Market Sentiment Hits “Extreme Fear” Zone
Supporting this cautious mood, the Crypto Fear & Greed Index reached 22/100 on Friday, marking its first entry into the “extreme fear” territory since April. This metric underscores heightened anxiety in the market despite technical signals pointing to a potential bounce.
Outlook: Rebound More Likely if Stocks Rally Next Week
Many analysts believe that a rebound in Bitcoin’s price becomes more probable if the broader stock markets head higher in the coming week. Given the current divergence and extreme fear readings, the next movements in correlated markets could play a pivotal role in shaping BTC’s trajectory.
Related Reading: $120K or End of Bull Market? 5 Things to Know in Bitcoin This Week
Disclaimer: This article does not constitute investment advice or recommendations. All trading and investment decisions involve risk. Readers are encouraged to conduct their own research before making any financial moves.
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