Bitcoin Price Holds Key Support as Market Sentiment Rebounds, What’s Next?

Key Insights:

• Crypto sentiment rebounded to a 3-month high (46) after Bitcoin price surged 6% toward $80K.
• The crypto market is still in the “Fear” zone but recovering sharply from February’s extreme low of 5.
• Long-term holders are accumulating Bitcoin as short-term traders sell, signaling stronger hands entering the market.

Crypto market sentiment improved sharply on Wednesday as Bitcoin price held key support after climbing nearly 6% and moved close to the $80,000 mark.

As a result, the  Crypto Fear & Greed Index on Alternative.me jumped 14 points to 46 out of 100. This marked the index’s highest reading since Jan. 18 and the largest one-day rise in more than three months.

Bitcoin Price Steady at $77K While Crypto Sentiment Reaches 3-Month Peak

Despite Bitcoin price holding steady momentum as it approaches the $80,000 mark, the index remains in the Fear zone.

However, it has rebounded sharply from its record low of 5 on Feb. 23. That drop followed the Trump administration’s move to impose a 15% global tariff, which pushed Bitcoin down to around $63,000.

Source: Alternative.me

Since Jan. 18, sentiment has stayed under pressure. Even so, institutional adoption on Wall Street has continued to grow, with several regulatory moves signaling a potential bullish rebound.

For example, the Labor Department proposed a change that could allow Bitcoin and other alternative assets into 401(k) plans. If that happens, it would be another sign that Washington is becoming more open to crypto.

However, Bitwise chief investment officer Matt Hougan and several market watchers point out that retail traders are still largely absent. Participation, they note, has not matched the levels seen in previous cycles.

That gap matters even more because retail activity is essentially what shapes the Crypto Fear & Greed Index. Some of these activities include Google search metrics and social media mentions. However, this index might often remain mute even when the market is still moving.

When writing, Bitcoin price nearly tested $80,000 after reaching $79,400 on Wednesday. Nonetheless, momentum has not fully held. The price has slightly eased back to $77,920, according to CoinGecko.

Bitcoin (BTC) Price Surge Powered by Perps Market, CryptoQuant Reports

In a post on X on Wednesday, CryptoQuant’s head of research, Julio Moreno, said the latest Bitcoin price rally was driven entirely by demand in the perpetual futures market.

Even so, he pointed out that spot demand was still shrinking, though only gradually. As a result, he warned that the market could face a pullback if traders begin locking in profits while spot demand continues to weaken.

Bitcoin Price News | Spot and Derivatives Data by CryptoQuant

In another post on X, CryptoQuant said more than 300,000 Bitcoin had moved to long-term holder wallets over the past 30 days. At the same time, short-term holders were reducing their positions. That trend, the firm said, showed that Bitcoin was moving into stronger hands.

The on-chain analytics platform also spotlighted Strategy and claimed the Bitcoin treasury firm acquired 53,000 BTC over the last month. As per the post, this suggests that Bitcoin is shifting from weaker to stronger hands.

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