Bitcoin sentiment falls into ‘fear’ as BTC price action hits $42.9K breakdown target

A screen shot of a boy Bitcoin

Bitcoin sentiment falls into 'fear' as BTC price action hits $42.9K breakdown target

Little market celebration accompanies the start of the Bitcoin 2022 conference as macro fears seep into sentiment.

Bitcoin sentiment falls into 'fear' as BTC price action hits $42.9K breakdown target

Bitcoin (BTC) kept disappointing hodlers on April 7 as the Bitcoin 2022 conference got underway to a limp BTC price performance.

Bitcoin sentiment falls into 'fear' as BTC price action hits $42.9K breakdown target

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Fed prepares $95 billion monthly balance sheet shrink

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it dropped below multiple support levels to reach its lowest since March 23.

Reversing at $42,741 on Bitstamp on April 7, the largest cryptocurrency was decidedly less bullish than the week prior, with analysts quick to point out contributing factors.

Central bank monetary tightening, namely from the U.S. Federal Reserve, remained the favorite, this having a potential long-lasting impact across risk assets going forward.

“The biggest headwind to Bitcoin and macroeconomic-sensitive commodities such as crude oil and copper stems from possible stock-market declines,” Mike McGlone, chief commodity strategist at Bloomberg Intelligence, explained on the day.

Market sentiment turns sour

The wider crypto mood suffered in tandem, as evidenced on April 7 by a sharp drop in the Crypto Fear & Greed Index.

After reaching its “greed” zone for the first time this year, the classic sentiment indicator was back in “fear” territory on the back of the past two days’ losses.

Crypto Fear & Greed Index (screenshot). Source: Alternative.me

The Index’s TradFi counterpart also nudged itself back to “fear” with a score of 44/100 on April 7.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Rate article
( No ratings yet )
FORECRYPTO