- Fear and Greed Index reads 62, translating to “Greed” in the market.
- The Bitcoin weekly RSI suggests that demand is still very high for BTC.
- Altcoins are undergoing a brief correctional phase after reaching overbought levels.
The crypto market crashed significantly in the past few days after Bitcoin (BTC) hit $108K. Traders secured profits once BTC reached $100K, while Ether (ETH) fell below $4,000 and now stands at $3,480.
BTC dominance soared to 56.8%, which pushed altcoins lower. The market leader remains at $97.6K, down 10% from its peak.
The Greed and Fear Index shows 62, reflecting considerable demand for BTC and other digital assets. The Relative Strength Index (RSI) for Bitcoin on the weekly chart reads 69.86, suggesting a longer-term bullish outlook. On the daily chart, RSI turned neutral.
As seen in the chart provided by TradingView above, the gradient of the weekly RSI line is on a sharp decline, which means that lower prices might be seen for a brief period before the bulls take chart once again. A retest of $100K is potentially possible.
Read also: Bitcoin 21M Supply Cap Under Scrutiny After BlackRock ETF Explainer
Altcoins Outlook: How Deep Will Crypto Dive? Key Indicators to Watch
The weekly chart for cryptocurrencies outside BTC and ETH shows an RSI of 62, pointing to strong altcoin demand. A pullback after an overbought phase is common in a bull market, and current prices reflect that.
Moreover, the Moving average convergence/divergence (MACD) indicator is still bullish with the signal line (red) below the MACD line (blue) and the histogram also remains green but the intensity of the color suggests a price correction. It is important to note that in the longer run, altcoins are bullish and the current dip could be an opportunity to buy more.
Read also: Altcoin Season Anticipation Grows Despite Crypto Market Crash
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