Bitcoin rises above $ 48,000 as market sentiment improves marginally, as demonstrated in The Fear of Crypto and the Greed Index. Dogecoin has also gained ground in the last 24 hours as the cryptocurrency market rebounds from its losses. At the time of publishing, the majority of tokens are trading in the green. According to CoinMarketCap statistics, the price of Bitcoin increased by more than 7% to intraday highs of $ 49,010. Alternative cryptocurrencies, or “altcoins,” surged as well, with Ethereum rising about 7% to over $ 4,000 and XRP rising roughly 4% to $ 0.886. Dogecoin, the meme-inspired cryptocurrency, has increased 4.7 percent in the last 24 hours to $ 0.17. Avalanche (AVAX) and Polygon (MATIC) are among the top 20 performers, with gains of 15.73 percent and 11.22 percent in the last 24 hours, respectively.
Given the vulnerable nature of the cryptocurrency market, today’s price action must be seen in perspective. This rebound comes after some days of intense selling, including a weekend crypto meltdown in which Bitcoin fell to about $42,875, and Ethereum fell to about $3,525.
That is not to diminish today’s rise, which has seen Bitcoin surpass $51,000 and Ethereum approach 4,400 dollars per token. However, investor mood in the cryptocurrency market is not been positive for those who have become accustomed to tremendously optimistic market circumstances over the last year.
Indeed, market mood is a major driver of the performance of prices for all the top cryptocurrencies like Bitcoin, Dogecoin, and many others. During this weekend’s flash drop, the crypto market’s general mood fell into the “oversold” zone. Over the last two days, a crucial indicator of sentiment reported “severe concern” in the top cryptocurrencies like Bitcoin. Typically, investors see this intense market mood as a favorable moment to purchase.
We’re all looking to purchase low and trade it at high prices. Purchasing an asset that is under huge falling selling pressure, on the other hand, is a difficult task. When there’s blood in the streets, we all want to assume we can purchase. Given the vulnerability of the cryptocurrency market, it’s reasonable that a few investors may have just wished to breathe a little and watch how the momentum goes up again before they start trading again. Today, there is a resurgence of positive momentum.
Bitcoin, Dogecoin, Ethereum, and a few others continue to be the most closely followed cryptocurrencies in the market. That is unlikely to change. Because of this, these few tokens are frequently seen as barometers of how many smaller alt currencies will do in the upcoming months.
Those who see cryptocurrency as a long-term investment might be correct in perceiving this extraordinary instability as a purchasing chance. As of now, a buy-the-dip strategy has performed well for these big coins. That might well change; nevertheless, for the time being, investors appear to be waiting for the right time to start their investments back again.