The cryptocurrency market remains down from peak levels, despite yesterday’s short-lived bounce. Amid the prevalent fear in the crypto market, the Cryptocurrency Fear and Greed Index has fallen to 9 which marks ‘’extreme fear’’.
Since the past year, the fear and greed index has touched the present levels or even lower levels six times, and on each occasion, this was followed by either consolidation or the beginning of a rally and a rebound. For instance, in March 2020, when the index similarly reached single digits, there was an influx of long-term buyers.
The present extreme fear may attract buyers who have been waiting for extreme oversold conditions to buy and hold cryptocurrencies in the long term. In the case of Bitcoin, The recent selloff brought BTC closer to the MA 200 at $21,840 on its weekly chart, which might act as lower support. Market observers opined that major long-term buyers might emerge around here.
Kraken Co-Founder and CEO, Jesse Powell, says $20k Bitcoin remains his buy target, “I spent half my available capital to buy BTC at $30k in July. Still holding, ofc. I told myself I’d have to see $20k to go all-in.”#
Mark Mobius, a veteran emerging markets investor, says that Bitcoin will only be a buy at $20,000. He expects a short-lived bounce to occur once the top cryptocurrency retraces to the aforementioned level.
Altcoins Rebound
After being oversold in the previous days, selected altcoins were posting a mild rebound as at press time, Bitcoin Cash (BCH) was up 12.94%, Maker (MKR) has gained 16.97%, Zcash (ZEC, +9.40%), The Graph (GRT,+16.71%), Kadena (KDA, +18%) and a handful of altcoins were trading in the green at press time.
Bitcoin Cash is preparing to add two significant improvements in its upcoming upgrade. Scheduled to occur on May 15, the Bitcoin Cash Improvement Proposals (CHIPs) approved to be added are CHIP-2021-03, which brings larger script integers to the chain, and CHIP-2021-02, which pertains to the activation of native introspection opcodes, directed to simplify the writing of smart contracts called covenants.
On-chain analytics, Santiment alludes to Maker’s recent price gain as a result of whales’ action, stating ‘’Maker has seen major whale activity these past couple days, and its largest spike in $100k+ transactions has propelled the asset +21% in the past week and another +18% in just the past day. Key stakeholders own an All-Time High in MKR supply’’.
Santiment also reports increased whale action for the eighth largest cryptocurrency, Cardano ADA stating ‘’Cardano’s whales showed a flurry of transactions yesterday as prices were bottoming out to $0.40, between 8 am and 12 pm UTC. These spikes have very commonly indicated price direction changes for ADA, and we’re monitoring further whale activity closely’’.
