Analysts Expect Impulsive Bitcoin Bounce Amid Market-Wide Fear

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The Fear and Greed Index indicates fear, but analysts expect Bitcoin to rally on the next major move. Bitcoin address activity has declined following a pullback in the asset as traders wait for a bullish reversal. The analyst expects an impulsive rebound to follow the recent consolidation of the top cryptocurrency.

The Bitcoin market correction highlights the need to record profit consistently throughout the rally. Despite the market wide recovery, the price of Bitcoin is stagnating under resistance.

Bitcoin price expected to recover after recent crisis

The 16% drop in Bitcoin’s price in a single day has shown traders the importance of locking in profits whenever accumulation peaks. Flash crashes in BTC are quite common, and the recent rapid upheaval does not imply that Bitcoin is outside the year-end forecast of $ 100,000.

The violent move resulted from the cascading $ 4 billion liquidations of over-leveraged Bitcoin and Ethereum futures contracts.

The Bitcoin Fear and Greed Index, considered an indicator of the general sentiment of traders in the market, currently indicates ‘fear’. Adrian Nazari, Founder and CEO of “The Birb Nest”, says:

Crowds are always in the middle of a trend but always wrong in the extremes.

This implies that buying – or accumulating – may be ideal, despite the “fear” among market participants. According to Nazari, the volume-based resistance is $ 47,500 and the top resistance is $ 50,402. The asset is trading at $ 47,121 at the time of writing, and Nazari expects the cryptocurrency to continue its rise.

Bitcoin on-chain metrics have remained essentially unchanged and bullish since July, but the trend would likely change with a drop in the number of transactions and reduced address activity.

Will Clemente, Chief Insights Analyst at Blockware Team, commented on the on-chain bullish macro predictions. Clemente emphasizes that on-chain outlook should not be used for day trading and that liquidation stunts do not invalidate macroeconomic trends.

Tired of the “chain is only bullish” misconception tbh. Anyone who says this does not understand how analysis should be used.

– On-chain follows macro trends, its use case is not to predict liquidation stunts. Look at the derivatives data for that.

– Will Clemente (@WClementeIII) September 9, 2021

The cryptocurrency analyst behind the @Crypto_Ed_NL Twitter account has started to be bullish on Bitcoin. He changed his position a few hours ago. The trader was expecting an impulsive rebound which did not materialize.

It was fun for as long as it lasted, but BTC is falling apart from that pennant. It seems that I was wrong in my expectations. So be it, no great drama. guys “will come in force https://t.co/f8NHhhgW7q

– Crypto_Ed_NL (@Crypto_Ed_NL) September 9, 2021

FXStreet analysts assess in the following clip where the cryptocurrency is heading next, predicting that the next bullish target is $ 57,000.

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