BTC/USD: The Bitcoin traders are less fearful as the price gains 23% on a month-on month basis

At press time, BTC/USD is sidelined near 7,700. The near-term bias remains neutral while the price is moving within the current trading range of 7,500-$8,000. A breakout will likely pave the way for a strong move in the direction of the breakthrough. Bitcoin's current market capitalization is $142 billion, which is 64% of the total market value. The first digital asset has stayed mostly unchanged both on a day-to-day basis and since the beginning of Tuesday.

Bitcoin traders sentiments have improved 

Crypto Fear and Greed Index shows that the market participants are is still in the panic mode.  At the time of writing, the indicator has settled at 28, which is a significant improvement from March 28 low, though it still means that investors are worried.  The index is based on various factors, including market volatility, trading volumes, and social media sentiments. 

The state of extreme fear may indicate that the price is about to form a bottom. It is usually viewed as a buying opportunity. Notably, Bitcoin's price has increased by 23% since March 28, which confirms the correlation between the price movements and Fear and Greed index momentum.

Bitcoin's volatility also decreased significantly in the recent month (from 139% on March 28 to 47% by press time), which is a major factor behind the sentiments improvement.

Bitcoin is ripe for an intraday correction

BTC/USD upside momentum has slowed down on approach to the next critical barrier of $8,000. The price created a tweezer top candlestick formation on a 4-hour chart. It is generally viewed as a bearish pattern as the market sentiments reversed after the price failed to extend the recovery above the recent high. 

If this pattern is confirmed, BTC/USD may retest the lower border for the recent range at $7,500. This line is a flipped resistance, which means it has the potential to stop the sell-off and trigger another bullish leg. 

BTC/USD 4-hour chart