• BTC price sentiment is in extreme fear, which is contrarian bullish.
  • Bitcoin price is forming a B wave triangle.
  • Invalidation of the bullish thesis is a breach below the swing low at $26,500.

Bitcoin price sideways action is now becoming more clear. A rally could occur towards $33,700. 

Bitcoin price is prepping for a breakout

Bitcoin price Fear and Greed index has been residing in extreme fear levels for over two weeks. This Index can be used as a contrarian bullish signal since more investors are unwilling to invest in the current BTC price leaves more room for smart money to accumulate large orders. 

The Bitcoin price also hints at smart money involvement on the 6-hour chart as what was once thought of as a confusing sideways market is now coiling into a very bullish pattern.

Bitcoin price is forming a sideways triangle. The long sideways action justifies a wave B pattern from an Elliott wave perspective. It has disproportionate time spent in the $30,000 zone since the initial countertrend rally that occurred at $31,200 on May 13th. If the technicals are correct, one more countertrend profit-taking rally will occur with targets at $33,700 and $34,000 before strong bearish resistance returns.

TM/BTC/5/23/22

BTC/USDT 6-Hour Chart

Invalidation of the bullish thesis is a breach below wave A at 28,630. If the bears manage to breach this barrier, the next target could be $23,500, resulting in a 20% decrease from the current BTC price.

fear and greed 5/23/22

https://alternative.me/crypto/fear-and-greed-index/

 

 

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

Recommended content


Recommended Content

Editors’ Picks

Tether acquires 32% stake in Canadian-listed Gold mining company Elemental

Tether acquires 32% stake in Canadian-listed Gold mining company Elemental

Tether Group, the issuer of the world’s largest stablecoin USDT through its affiliate Tether Investments, has completed the acquisition of a 32% stake in Elemental Altus Royalties Corp. (Elemental).

Crypto Today: Bitcoin, Ethereum, XRP risk further decline amid softer volumes and profit-taking 

Crypto Today: Bitcoin, Ethereum, XRP risk further decline amid softer volumes and profit-taking 

Bitcoin extends losses below $108,000 amid subdued trading volume, a decline in funding rates, and a drop in open interest. Ethereum’s uptrend fails to gain strength and falters, nearing support at $2,700 despite surging spot ETF inflows.

Shiba Inu Price Forecast: Correction looms amid whale sell-off and falling supply in profit 

Shiba Inu Price Forecast: Correction looms amid whale sell-off and falling supply in profit 

Shiba Inu's supply in profit drops significantly as whales offload SHIB amid low performance. Optimism wanes in Shiba Inu derivatives as Open Interest and the Long/Short ratio decline. 

Bitcoin Price Forecast: BTC edges below $108,000 as geopolitical risks weigh on sentiment

Bitcoin Price Forecast: BTC edges below $108,000 as geopolitical risks weigh on sentiment

Bitcoin price continues its pullback, trading below $108,000 on Thursday, following the previous day's decline. Risk-off sentiment rises as the conflict in the Middle East escalates, with reports suggesting that Israel is readying an imminent attack on Iran.

Bitcoin: BTC could slump to $100K amid Trump-Musk tussle

Bitcoin: BTC could slump to $100K amid Trump-Musk tussle

Bitcoin (BTC) tumbled to a low of $101,095 on Friday amid volatility in the market. The effect of the tussle between United States (US) President Donald Trump and Tesla Chief Elon Musk negatively influenced the NASDAQ and Tesla's stock price on Thursday, although both are recovering on Friday.

The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

BTC

ETH

XRP