- The Fear and Greed Index shows that Bitcoin now reached an emotional support level, signaling potential market opportunities.
- Bitfinex’s relationship with Bitcoin could ignite a major market rally.
Bitcoin [BTC] has maintained a bullish threshold in the market, holding a relative rally-to-decline level from 6.57% to a drop of just 1.43%.
AMBCrypto’s analysis indicates that the asset has reached a key balanced position, and buying activity has already resumed—preparing the asset for a potential major run.
Market hits a balance—But is this a good sign?
According to AMBCrypto’s look at Alphractal, Bitcoin’s Fear and Greed ratio hit the neutral mark of 50 as the asset declined below $104,000.
Historically, this zone has acted as emotional support for the market, where short-term buying typically resumes.
While this is generally a caution zone for trading, AMBCrypto found that Bitfinex traders may be opening the door to a potential market boost.
Bitfinex behavior and historical patterns
Alphractal also highlighted historical data linking the asset’s price movements with Bitfinex trader behavior.
A decline in long positions on Bitfinex often precedes a Bitcoin rally, while a rise in long positions has historically aligned with price declines.
At press time, long positions on Bitfinex continued to drop, while the asset gradually gained momentum. If this historical pattern holds, the asset could be primed for a major rally.
A major hurdle lies ahead of Bitcoin
Despite the potential for upside, analysis shows the asset faces significant resistance.
Bitcoin is likely to encounter a major hurdle at a key supply zone, as indicated by the Global In/Out of the Money Around Price (IOMAP) metric.
The IOMAP reveals that around the $105,000 region, Bitcoin could face substantial selling pressure, amounting to as much as 698,450 Bitcoin.
Similarly, traditional investors are posing a threat to Bitcoin’s potential rally.
After accumulating a total of $462 million over the previous two days, they have now begun selling.
At the time of writing, these investors have sold $278.40 million worth of Bitcoin—more than half of what was initially accumulated.
If this downward trend continues, its effect on Bitcoin could trigger a price drop, as a supply-demand imbalance may develop in the market.
To overcome this level and reverse the current downtrend, Bitcoin will require strong buying momentum to initiate a sustained price rally in the coming days.
