Bitcoin had fallen from the $40,000 line after Amazon denounced rumors of it integrating Bitcoin with its payment plan. However, Bitcoin showed a sudden surge reaching $40,000 today (2021-07-28 05:45 AM UTC).
At the time of writing, Bitcoin is currently trading at $ 39,531 (8:49 AM UTC) with a 24-hour price change of +5.00%. Prices at one point reached lower than $36,000 after Amazon clarified rumors, but eventually rose again after investors showed enthusiasm and trade volume increased.
It is, however, premature to conclude that the market is on an upward rise. Investors are partially confident but there is a sentiment improvement after the Fear and Greed Index showed a ‘neutral’ state of investors. Before, the market sentiment was in a state of ‘extreme fear’ ever since the Bitcoin prices started falling.
The Fear & Greed Index is calculated on the basis of volatility, Google trends, social media sentiment analysis, dominance, and market momentum.
A report by Arcane research noted:
“The increasing volume amid bitcoin’s strength suggests that the strong recovery was supported by an influx of buyers, a healthy sign for the market.”
“Overall, the seven-day average trading volume remains substantially below its yearly average, and trading activity in bitcoin seems to be low so far this summer.”