Bitcoin price has pulled back from the three-month high it reached in Wednesday’s session. However, as has been the case for a week now, the leading cryptocurrency has held steady above $40,000. Notably, an improvement in risk sentiment has boosted cryptocurrencies.
According to the Crypto fear & greed index, greed is the key emotion driving the market. Over the past two sessions, it has reflected a reading of 70 compared to last week’s neutral of 50. In the past month, extreme fear had impacted the market as reflected by a reading of 20.
Bitcoin price technical outlook
BTCUSD is on a decline after hitting a three-month high of 46,858.38 in the previous session. At the time of writing, it was down by 2.78% at 44,272.50. Since plunging below the crucial support level of 30,000 in mid-July, it has surged by over 50%. However, it is trading about 31.92% lower than its record high in mid-April.
On a four-hour chart, it is trading between the 25 and 50-day exponential moving averages. In the near term, Bitcoin price is likely to trade within a tight range of between 45,000 – along the 25-day EMA, and along the 50-day EMA at 44,000. Below that support level, it may decline to 42,500 before rebounding.
On the flip side, it may rebound to Wednesday’s high of 46,858.38. If the bulls gather enough momentum to push past the resistance at 48,000, the path to the next target at 50,000 will be clear.