Bitcoin Enters ‘Optimism Stage’—Is a Massive Rally About to Begin?
Bitcoin has been showing signs of recovery after a sharp drop, raising its price to below $80,000 last week. Cryptocurrency briefly soared to $92,756 in the early hours of this morning before going back to $90,279, up 0.7% over the past 24 hours.
Price action Stay fluctuatingAccording to crypto analyst Woominkyu, market sentiment indicators indicate a critical stage in the Bitcoin trajectory.
Bitcoin’s market cycle: Entering an optimistic stage
In the nearest one analyze Titled “FOMO is not here yet,” Woominkyu focuses on Bitcoin’s Fear and Greed Index, which tracks the sentiment of investors across the board. The index is based on a 30-day moving average (SMA 30), mapping Bitcoin’s market cycles to different psychological stages observed in past gatherings.
Historically, this metric has helped determine when Bitcoin is in the early stages of a bull run, or when excessive optimism may lead to corrections.
According to Woominkyu, Bitcoin is now entering a “optimistic phase”, which is related to the early stages of strong gatherings. During the past cycle, when Bitcoin reached this level, the market has often risen to momentum, resulting in Further price increases.
However, analysts warn that if the index continues to rise to the euphoria phase, it may indicate excessive market optimism, which is usually in Steep correction.
The main observation of Woominkyu analysis is that despite the recovery of Bitcoin, FOMO (Fear of Missing) has not been fully set in investors.
This shows that while sentiment is improving, Bitcoin has not yet had a speculative bubble. The next few weeks are for sure whether The market follows the past pattern– Move higher from the optimistic phase, or if external factors push bitcoin to correction.
Whale activities on the market
Although emotional indicators provide insights into market psychology, whale activity is another key factor in affecting Bitcoin price transfer.
Another crypto contributor, Maartunn, has reveal Powered whale deposits hit three-month highs, with the currency worth more than $7.3 billion in the past 30 days.
These movements suggest that large investors are actively positioning themselves, which may lead to increased volatility in the market. From a historical perspective Important whale activities Consistent with the major price fluctuations, it makes it an important indicator for monitoring.
The high of whale to second-hand traffic in the last 30 days was $7.3B
“This usually happens at the same time as a major price change, indicating that the big holders choose binance in exchange. It is important to watch whales’ deposits because their actions can drive the market.” – By @iho_mismun pic.twitter.com/psd3zudxf3
– cryptoquant.com (@cryptoquant_com) March 6, 2025
Feature images created with DALL-E, charts for TradingView
