bitcoin (BTC) sentiment is seeing its first significant test of rallying to year-to-date highs as bullish gains run out.
The start of Wall Street trading on March 30 failed to induce a further advance in BTC/USD, which threatened to break support at $47,000.
From "extreme fear" to "greed" in one week
After gaining almost 30% since March 14, Bitcoin has managed to hold on to its yearly opening price as support, which previously marked the resistance ceiling of its trading range for all of 2022.
Now, however, hopes of a pullback appear to be coming true as momentum shows signs of at least temporary fatigue.
Data of Markets Cointelegraph Pro and TradingView caught the change overnight on March 30, with $48,000 currently the level that is showing stubborn for bulls to break above.
Traders are keeping an eye on the possibility of a backtest of support, but remain mixed on how low would be โtoo lowโ and end up threatening the uptrend altogether.
Popular trader Crypto Ed highlighted $45,000 as a central bounce zone in the event of a broader pullback, however it is down from the major yearly open at $46,200.
A breakdown there and moving towards $40,000, he aggregate in his last YouTube update, it was something he "doubted".
Looking However, in the Crypto Fear & Greed Index sentiment gauge, the need for a timeout becomes even more apparent. In less than a week, his normalized score went from 22/100 (extreme fear) to 60/100 (greed) and its highest level since mid-November.
From the home cap, the score has already begun to slide into "neutral" territory, measuring 56/100 as of March 30.
Inflation nightmare scenario at stake
Analyzing the problem of sentiment, users of social networks referenced Macro forces at work, which traditionally spell trouble for risky assets in order to argue that the hype around Bitcoin has overheated.
Related: Bitcoin Hits 3-Day Low as Terra BTC Purchases Drain Below $48K
Highest inflation in 40 years and near-zero interest rates hardly provide a fertile environment for risk, they argued.
However, a look at the gold markets could show that the trend is going nowhere despite the central bank's moves to control inflation.
Material Scientist, creator of the on-chain analysis resource Material Indicators, noted that gold futures deliveries were following the "dysfunctional" path previously predicted by former BitMEX CEO Arthur Hayes.
Hayes had warned that gold would soar once it became clear that saving in major fiat currencies was an unconvincing gamble.
This is what Hayes talked about in his last article https://t.co/khsadQuEGK
โ Materials Scientist (@Mtrl_Scientist) March 30, 2022
In the same article, Hayes said that Bitcoin would ultimately benefit from the chaos through a decoupling from traditional stocks.
"A gold price of > $10,000 will psychologically impact global asset markets. With global asset allocators now thinking primarily of inflation and real returns, any and all hard money assets believed to protect the portfolios of this pestilence will be offered at astronomical levels," he said. he wrote.
"And that's the mind shift that breaks Bitcoin's correlation with traditional risk on/off assets like US stocks and nominal interest rates."
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