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The sell-off of miners that occurred last week caused the market’s “sense of fear” about bitcoin to increase. As a result, the Fear & Greed index reached 30 points (the lowest level in the last 30 days) in the week between September 10 and September 17.

According to Transfero’s analysis, investors’ concern has opened room for new buying opportunities. “The US$ 42.7 thousand support has not been broken and, depending on the buying strength, we could have a U-shaped recovery in the coming days, which is characterized by a sharp fall, going through a lateralized period and then a strong recovery soon after”, assessed the company’s team. If this occurs, BTC will return to the US$ 51.2 thousand range.

According to Transfero, this rapid recovery can occur due to some apparent factors shown in the charts.

  • Beginning of the “Golden Cross” (crossing of moving averages of 50 and 200 periods).
  • Decreasing volumes, which reinforces the loss of strength of the correction.

Although market expectations and optimism remain high, Transfero team warns it is essential to pay attention to major global market news. For example, the crisis in China Evergrande Group, China’s leading real estate developer, sets off a warning signal that could end up affecting the crypto market.

“A liquidity rush to raise funds and stake losses on major exchanges can occur. It would be something similar to what happened in March 2020, with the beginning of the pandemic”, the team of analysts said.

However, the big difference is that since then, the crypto market has been growing and strengthening. The global market cap in March 2020 was US$ 260 billion, currently above US$ 2 trillion.

Another interesting detail pointed out by Transfero is the loss of dominance of BTC, which currently stands at 41.4%. This represents a fall of almost 30% from the beginning of the year. Altcoins have been gaining more space in the crypto market, mainly due to the growth of cryptoassets like Ethereum, Solana and Cardano, and their respective decentralized ecosystems (DeFi).