Sentiment among crypto market participants has again turned bullish following a modest price increase in several major cryptocurrencies over the past 24 hours.
The Crypto Fear & Greed Index rose to “Greed” on Thursday with a score of 62 out of 100, recovering from a drop into “Neutral” the day before. It followed several volatile days in the crypto market as Bitcoin (BTC) fell to $112,000 over the weekend, just weeks after hitting an all-time high of $123,100 in mid-July.
Sentiment bump shows market anticipates stability
The index’s return to “Greed” came as Bitcoin rose 1% over the past 24 hours, trading at $114,298, according to Nansen.
The slight price uptick, along with the bump in sentiment, signals that market participants view the modest gain as a sign of stability in the near term.
Meanwhile, onchain analytics firm Glassnode said on Wednesday that profit-taking among Bitcoin Short-Term Holders — those holding for less than 155 days — has “cooled off.”
The broader crypto market also moved higher. Ether (ETH) posted gains of 2.37% over the past 24 hours to trade at $3,664 at the time of publication, while XRP (XRP) posted gains of 2.14% to trade at $2.97, and Solana (SOL) posted gains of 3.26% to trade at $167.38.
Analysts say Bitcoin on for “bullish breakout”
The uptick in sentiment was echoed through analysts’ commentary on Thursday, with MN Trading Capital founder Michael van de Poppe saying on X that “Bitcoin is back to resistance and consolidates here. This test should likely bring the bullish breakout.”
Related: Crypto funds see $223M outflow, ending 15-week streak as Fed dampens sentiment
Crypto trader Galaxy said the last time Bitcoin saw similar volatility was in November, before it climbed from around $70,000 to $100,000 by Dec. 5 during a month-long rally following Donald Trump’s US presidential election win.
Crypto trader Ted predicted that Bitcoin may reach new highs of $125,000 soon, while noting that it would trigger $18 billion in liquidations.
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