Crypto Markets Analysis: Fear Abates as Bitcoin Enters New Level of Support

Bitcoin (BTC) and most other major cryptos have been soaring, but the upswing may only be part of the reason for investors to be optimistic.

Several key trading trends are pointing upward for the first time in months, suggesting the current rally will be more than just a temporary improvement. They reflect surging investor confidence that has also carried stock markets higher, albeit to a lesser degree than cryptocurrencies, and offer a welcome pause from months-long negativity that sent riskier assets dramatically lower throughout 2023.

«Whale» investors are not moving BTC onto exchanges as they often do during dramatic price surges, over-the-counter (OTC) desks have sharply increased their holdings and the Crypto Fear & Greed Index, a widely watched measure of investor sentiment, has entered neutral territory for the first time in 10 months.

Bitcoin was recently snugly perched above $21,000, which may become its new support threshold. Ether (ETH) was holding steady above $1,500 after weeks of hobbling below $1,200. Equity markets have risen more moderately, with the tech-heavy Nasdaq and S&P 500, which has a hefty technology component, climbing 5.8% and 2.8%, respectively. How long these trends continue is uncertain of course. The ensuing weeks will be interesting.

Whale investor activity

Given their size, whales – investors holding at least 1,000 bitcoin – can significantly affect markets through their buying and selling.

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