- The Fear and Greed Index shows that Bitcoin now reached an emotional support level, signaling potential market opportunities.
- Bitfinex’s relationship with Bitcoin could ignite a major market rally.
Bitcoin [BTC] has maintained a bullish threshold in the market, holding a relative rally-to-decline level from 6.57% to a drop of just 1.43%.
AMBCrypto’s analysis indicates that the asset has reached a key balanced position, and buying activity has already resumed—preparing the asset for a potential major run.
Market hits a balance—But is this a good sign?
According to AMBCrypto’s look at Alphractal, Bitcoin’s Fear and Greed ratio hit the neutral mark of 50 as the asset declined below $104,000.
Source: Alphractal
Historically, this zone has acted as emotional support for the market, where short-term buying typically resumes.
While this is generally a caution zone for trading, AMBCrypto found that Bitfinex traders may be opening the door to a potential market boost.
Bitfinex behavior and historical patterns
Alphractal also highlighted historical data linking the asset’s price movements with Bitfinex trader behavior.
A decline in long positions on Bitfinex often precedes a Bitcoin rally, while a rise in long positions has historically aligned with price declines.
Source: Alphractal
At press time, long positions on Bitfinex continued to drop, while the asset gradually gained momentum. If this historical pattern holds, the asset could be primed for a major rally.
A major hurdle lies ahead of Bitcoin
Despite the potential for upside, analysis shows the asset faces significant resistance.
Bitcoin is likely to encounter a major hurdle at a key supply zone, as indicated by the Global In/Out of the Money Around Price (IOMAP) metric.
Source: CoinGlass
The IOMAP reveals that around the $105,000 region, Bitcoin could face substantial selling pressure, amounting to as much as 698,450 Bitcoin.
Similarly, traditional investors are posing a threat to Bitcoin’s potential rally.
After accumulating a total of $462 million over the previous two days, they have now begun selling.
At the time of writing, these investors have sold $278.40 million worth of Bitcoin—more than half of what was initially accumulated.
Source: CoinGlass
If this downward trend continues, its effect on Bitcoin could trigger a price drop, as a supply-demand imbalance may develop in the market.
To overcome this level and reverse the current downtrend, Bitcoin will require strong buying momentum to initiate a sustained price rally in the coming days.
