The crypto market remains in a positive mood with a total capitalization of around $ 2.6 trillion. Bitcoin It received support earlier in the week on a decline to $ 60K, but failed to take the steady upward path. The volatility will likely increase as the price moves out of the $ 60-65K range.
Bitcoin is still a market driver and can be confidently viewed as a sentiment barometer. The cryptocurrency's Greed & Fear index is back in extreme greed mode at 76. The RSI index on the daily chart for the BTCUSD pair is some distance from the overbought zone at 62.
Technically, the bitcoin correction late last week removed some of the local overbought areas after the rally since late September. For the bulls, this opens up opportunities for a build-up of potential targets of $ 83K. However, looking ahead, Bitcoin is just starting a new bullish momentum, targeting the $ 95-100K area. Up to those levels, we may not see a prolonged and significant pullback.
Several Bitcoin ETFs were launched last week, which got off to a very successful start and supported sentiment in the cryptocurrency market. Some more can be released this week, which should keep the overall positive sentiment in the market.
Of course, this factor cannot support the cryptocurrency market forever, and we will soon begin to see the impact of other events.
One such event could be the start of compensation payments from the infamous Mt Gox exchange. Lenders have approved a compensation plan and there is 150K BTC in the fund for this purpose. This is a huge amount of coins, and many of those who received such compensation will sell theirs. The first thing to consider here is that the price of bitcoin has risen many times since the exchange was hacked. At one point, Kobayashi, the exchange's asset manager, became a central player in the cryptocurrency market; This is likely to happen again.
While the price of Bitcoin is near an all-time high anyway, the network's processing power has never recovered to its peak in mid-May. The relocation of Chinese miners to Kazakhstan is probably over, for the most part, making the country No. 2 in the world in terms of hash rate. If the local authorities do not oppose the work of the miners, the capacity will continue to increase there already. Many factors point to the likelihood of continued price increases, which could start to stimulate stronger FOMO in the cryptocurrency market history.
