Bitcoin (BTC) is showing early signs of stabilization after a volatile fortnight, with trader sentiment shifting from panic to cautious neutrality.
Shift in Market Sentiment
According to analyst Maartunn, as of September 3, the Crypto Fear & Greed Index has moved from a state of 'Fear' to a more neutral reading, hovering between 39 and 46. This important change indicates that the intense selling pressure that drove BTC from its August 14 peak of $124,457 might be easing.
Bitcoin Prices and Macro Factors
At the time of writing, Bitcoin was trading around $110,700, reflecting a slight 0.3% increase over the last 24 hours. However, this price represents a 3.2% drop over the past month, placing BTC nearly 11% below its recent all-time high. Nonetheless, Bitcoin still shows a substantial 87.6% gain over the past year.
Possible Future Scenarios
Analysts indicate that the immediate battleground for the asset is the $112,000 level. A break above this price could signal strength, while a failure may mean a deeper test of support around $105,000. This technical struggle occurs in a complicated macroeconomic context, as many anticipate interest rate cuts from the Federal Reserve at its September 17 meeting.
Currently, Bitcoin is showing cautious optimism with the potential for recovery in the midst of volatile market conditions and macroeconomic uncertainty.
