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Bitcoin Gains As Investors Remain Jittery 

According to Binance data, the most valuable crypto asset was trading at $42.7K on Wednesday morning, up 2% on the day.

Bitcoin, which reached $43K on Tuesday, led a broad market recovery in crypto. The stock market in the United States rose after halting its five-day decline ahead of Wednesday’s Consumer Price Index (CPI) release.

According to Binance data, the most valuable bitcoin, crypto asset was trading at $42.7K on Wednesday morning, up 2% on the day.

Stocks and risky assets, such as cryptocurrency, appear to have benefited from Powell’s remarks about the United States remaining in a low-interest environment for some time.

Despite the current push to $43K, traders remain cautious despite on-chain indicators remaining bullish and open interest anticipating an upside “short squeeze.”

After plummeting to multi-month lows earlier this week, the Crypto Fear & Greed Index has maintained its position of “extreme fear” with the crypto price rebounding overnight.

Furthermore, some cryptocurrency experts predicted that altcoins would form bull traps by rising before resuming their own downward trend.

Furthermore, many altcoins appear to be about to bounce before a leg down.

The rises have already bounced off after forming parabolic curves in many of the retesting areas, but there are vast areas below where no supports have been placed.

Based on data from the crypto intelligence platform Santiment, social trends from traders confirm the official bear market status of cryptocurrencies.

The bearish sentiment that prevailed in May 2021 will be reversed as investors and traders capitulate in 2022 continues.

Based on social trend data, traders appear to believe that cryptocurrency is in an official bear market.”

“Bearish sentiment has not been this prevalent since mid-May, which is very encouraging news that weak hands are capitulating,” the blockchain analytics firm added.

 

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