Economist and crypto analyst Alex Krüger believes that Bitcoin is poised for a massive upswing after market participants’ huge concerns about Bitcoin
Economist and cryptocurrency analyst Alex Krüger believes that Bitcoin is poised for a massive upswing after market participants’ huge concerns about Bitcoin.
In a new tweet, Krüger told his 82,900 followers that his Fear and Greed Index, which measures market sentiment, has dropped to a level not seen since the coronavirus-induced panic last year.
“When the Fear and Greed Index drops this low, it usually follows a strong rally. The index is now as low as the day after Black Thursday in 2020.”
According to Krüger, Bitcoin’s relative strength index (RSI), a technical indicator that tracks an asset’s momentum, is currently hovering at a level that is usually followed by a large rise in price.
According to the analyst’s chart, Bitcoin value surged after the RSI fell to oversold levels and regained the key 30 support. This correlation has occurred four times in the last two and a half years.
Krüger also reminds his followers that Bitcoin has survived one of the worst months in history. He points to a tweet by fellow cryptocurrency analyst Luke Martin, who has been following Bitcoin’s deepest monthly sales since 2016:
“May 2021 is the bloodiest month in BTC history. Worst monthly drops in the last 5 years:
•May 2021: -37%
November 2018: -36%
•March 2018: -32%
January 2018: -27%
•March 2020: -25%.”
As of press time, Bitcoin is trading at $36,568, up 6.15% in the last 24 hours, according to CoinMarketCap.