Bitcoin hits $30k as greed takes over: Next stop $40k?

Bitcoin broke to $30k on Wednesday afternoon, trading to $30,777 on crypto exchange Coinbase as bulls pushed BTC to its highest level since April 14 when the benchmark crypto traded above $31,000.

And just like that#BTC has erased the majority of the downside resulting from the mid-April correction$BTC #Crypto #Bitcoin

— Rekt Capital (@rektcapital) June 21, 2023

The massive gains for Bitcoin this week continued to ride the sentiment flip that accompanied global asset investment giant Blackrock’s Bitcoin ETF filing. The asset maanger’s move sparked an array of other spot ETF filings from WisdomTree and Invesco, and saw reports emerge of a similar plan by Fidelity Investments.

The launch of the Citadel and Schwab-backed crypto exchange EDX Markets looks to have also catalysed further upside action for BTC price. The question now is whether bulls have the appetite to push prices towards a new year-to-date high and possibly $40 in coming days.

The price action over the past week suggests this is possible, particularly given Bitcoin’s technical picture where price broke above a key downtrend line.

Bitcoin Fear & Greed Index

According to the Bitcoin Fear & Greed Index, a metric that highlights investor sentiment across the market as prices fall and rise, the current price scenario has BTC in the “Greed” phase. As prices crossed the two levels of $28k and $29k, the index shot above the 55 mark to suggest FOMO was in play as the market reacted to the latest crypto news.

Bitcoin Fear and Greed Index is 59 — Greed
Current price: $28,846 pic.twitter.com/s8AyS87H76

— Bitcoin Fear and Greed Index (@BitcoinFear) June 21, 2023

After Fed Chair Jerome Powell said on Wednesday that the central bank was looking at more rate hikes after the June pause, stocks slumped. But Bitcoin led the crypto market higher, with the Fear & Greed Index spiking to 65 as of 1 pm ET on June 21.

What next for BTC? $40k?

According to on-chain and financial metric data provider Glassnode, Bitcoin price could rise to $34,280 – which is the next major resistance level. The platform looks at the Fibonacci retracement levels of Bitcoin price since its all-time high in 2021 to suggest the key levels also lie at the $42k and $52k zones.

The #Bitcoin Spot Price has found robust support at the -61.8% golden ratio Fibonacci retracement at $26,190.

The next direct resistance according to the Fibonacci model resides as the -50.0% retracement of $34,280. pic.twitter.com/68TxX2roqk

— glassnode (@glassnode) June 21, 2023