Bitcoin Price Remains Range-Bound Despite Improved Risk Sentiment

Summary:

Bitcoin price is within a horizontal channel of between $32,000 and $33,000. Despite the improved risk sentiment, extreme fear is still observable.

Bitcoin price has eased as bulls lack enough momentum to push it past the crucial support-turn-resistance level of $33,000. Earlier in the week, the risk-off mood in the market pushed the cryptocurrency below the psychological level of $30,000 for the first in a month. On Tuesday, it hit an intraday low of 29,261.92. it has since rebounded by about 9.83%.

Notably, an improvement of the risk sentiment has boosted Bitcoin price. However, it remains subject to market volatility. Since hitting its record high in mid-April, it has dropped by about 50%. In addition to the regulatory issues, the risk sentiment and concerns on inflation are likely to fuel the volatility in the ensuing sessions.

The fear & greed index still signals extreme fear in the market despite the improved risk sentiment. Earlier in the week, the index was at 23. It has since risen to 25; stagnating at the previous session’s reading. Market volatility is currently at neutral after signaling extreme fear earlier in the week.

Bitcoin price technical outlook

Bitcoin price is up by 0.28% at 32,378.16. On a two-hour chart, it is trading above the 25 and 50-day exponential moving averages. In the near term, I expect it to remain within the horizontal channel of between 32,000 and 33,000. If the bulls manage to push the prices past the resistance level at 33,000, the next target will be at 33,500 and 34,000. On the flip side, a move below the support level of 32,000 is likely to place the next target at 31,510 and 31,000.