Bitcoin Retains $7K as 'Extreme Fear' Clashes With Parabolic Forecast
Declining volatility and staying clear of $6,000 fails to convince everyone, with sentiment flashing “extreme fear” more so than at the end of 2018.
Bitcoin (BTC) held on to $7,000 support on Dec. 20 as a major sentiment indicator revealed investors were still highly panicked by current price action.
Cryptocurrency market daily overview. Source: Coin360
Bitcoin surpasses 2018’s “extreme fear”
Data from Coin360 and Cointelegraph Markets showed BTC/USD repeatedly test the $7,000 barrier on Friday, each time bouncing off to linger around $7,100.
At press time, Bitcoin had stayed out of the $6,000 range consistently since it broke away from lower levels late on Wednesday.
Bitcoin 1-day price chart. Source: Coin360
Now, traders were noticeably split over the cryptocurrency’s short-term prospects — some predicted a return to lower levels seen earlier in the week, while others forecast bullish behavior.
Leading the bulls was the well-known but abstemious Twitter account Parabolic Trav. In a comparatively rare tweet on Friday, the social media stalwart suggested Bitcoin was ready to repeat its bull run from earlier in 2019.
“I’m ready for parabola 2 of this bull run. You?” he wrote.
Elsewhere, however, sentiment appeared broadly bearish. Bitcoin’s Fear & Greed Index, a tool measuring investor “emotions and sentiment” as a score out of 100, remained at 23 — classified as “extreme fear.”
For comparison, at around Bitcoin’s 2018 lows of $3,100, the Index reading was actually higher than at present — 24 in December.
Traditionally, Fear & Greed has predicted price upticks, which have followed many of the dips to “extreme fear” on its indicator.
For comparison, BTC/USD diving to $6,400 this week triggered a rating of 15.
Altcoins calm after a week of carnage
Altcoins once again copied Bitcoin as markets steadied, stemming significant losses seen over previous days.
Ether (ETH), the largest altcoin, stayed static at around $128 over the past 24 hours.
Ether 7-day price chart. Source: Coin360
The overall cryptocurrency market cap was $191.1 billion, with Bitcoin’s share a touch lower at 68.2%.