Bitcoin Still Looking Up After Stocks Push BTC Price Toward $42K

‘Fear’ seems to be in the air on crypto markets as the weekend starts with an eerie lack of volatility or considerable Bitcoin (BTC) price corrections.

BTC held above $41,000 into the weekend after a late surge Friday took the biggest crypto to reach 2-week highs.

Data acquired from TradingView showed BTC/USD maintaining its newly re-won ground on February 5, 2022, with the crypto’s correlation to stock markets strongly in focus.

Analysts had said that the $39,600 area is a critical line to cross and flip to new support to secure some more upside ground. In the event, that was no issue for the bulls, as Bitcoin exploded in seconds as it neared $40,000 to continue with its upside momentum.

Amid the new strength, the mood was majorly buoyant than in recent days and weeks. One popular analyst Credible Crypto compared current action to Q4 2020 where Bitcoin challenged $12,000 before it went on to break its 3-year all-time highs.

Characteristic of a 1-2, 1-2 or start of a new impulse is strong moves up, shallow pullbacks, continuation. The first chart is from 11-12k before our breakout and run to 60k. The second chart is now, and what I expect to play out to further confirm our major 5th has started. $BTC pic.twitter.com/gDvt4hsQoq

— Credible Crypto (@CredibleCrypto) February 5, 2022

Trader and analyst Pentoshi quipped as the Bitcoin market continued rising to flirt with $42,000:

“The only good bear is a dead bear.”

The others were not well convinced of the sustainability of the latest move, with data showing significant large-volume selling starting as $40,000 re-emerged.

https://twitter.com/Mtrl_Scientist/status/1489646796121022469

Based on previous reports, signs had already been circulating that an upside movement was due, mainly as a result of the time-tested relative strength index (RSI) breaking a 2-month downtrend late last month.

While comparing similar RSI breakouts, statistician Willy Woo commented:

“Probably worth mentioning price is at historic levels of oversold to on-chain demand/supply, and the futures traders have halted their sell-down.”

Fear Increases For Wary Bitcoin Hodlers

Turning to sentiment, the sense of caution characterizing the market since November’s $69,000 peak remained.

Based on the Crypto Fear & Greed Index, “fear” was still the overriding emotion among the market participants, even after the price spike.

The Index that uses an assortment of factors to create a nominal sentiment score from 0-100, measured 33 at the time of publication, having spent most of January below 25, which is the “extreme fear” zone.

Nevertheless, the last time that the Index was that high was around 6 weeks ago, just after Christmas.