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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Crypto Market Sentiment Holds Steady Amid Bitcoin Correction
Despite Bitcoin falling nearly 2% to around $105,560, crypto market sentiment remains relatively stable, with the Crypto Fear & Greed Index maintaining its “Greed” reading of 63.
This follows Bitcoin’s pullback of 1.79% over the past 24 hours, after hitting near $108,000 the day before. According to CoinMarketCap data, Bitcoin’s price dropped to $105,560.
Hopes for Third-Quarter Performance Spark Optimism?
Analysts continue to speculate on whether Bitcoin could retest its May 22 all-time high of $111,970. Optimism was high Monday as the cryptocurrency approached $109,000.
However, sentiment metrics show caution as the historically slower third quarter (commencing July 1) begins. Crypto trader Daan Crypto Trades noted that this period typically sees reduced activity.
Historical data from CoinGlass indicates an average 5.47% gain for Bitcoin during the past Q3s. If this trend holds, Bitcoin could be expected around $111,000 by September 30.
Second Quarter Performance Exceeds Average Returns
Entering the third quarter, Bitcoin closely tracked its historical performance during the previous second quarter. Ending around $108,383, it achieved a 31% gain—marginally exceeding the 27% average Q2 return since 2014—and marked its highest monthly candle by the end of June.
Average investor sentiment appears receptive to Bitcoin, evidenced by its near 65.5% dominance, a 13% increase year-to-date, according to TradingView.
However, indicators also reveal caution. CryptoQuant Research head Charles Morris notes that its Bitcoin Bull Score Index has recently fallen into a “NEUTRAL” zone at 50.5, falling short of the 60 threshold needed to signal sustained bullishness.
Meanwhile, separate analysis suggests Bitcoin may post slightly above its historical trend if volume arguments hold.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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