Bitcoin price to soar as Crypto Fear and Greed Index nears key zone

Bitcoin jumped to a record high, boosted by safe-haven bets, increased exchange-traded funds inflow, and the rising Fear and Greed Index.

Bitcoin price rises as Crypto Fear and Greed Index jumps

Bitcoin (BTC) price continued its strong rally as investors embraced a risk-on sentiment. This sentiment is seen in the rising Crypto Fear and Greed Index, which has moved from the fear zone of 39 in September and is approaching the greed zone of 60.

Bitcoin and other cryptocurrencies normally jumps whenever the index is in an uptrend. The gains accelerate whenever it moves to the extreme greed zone.

BTC price is also jumping as investors have embraced it as a safe-haven asset like gold. One evidence for this is that inflows into spot BTC ETFshave continued rising as the government shutdown happened.

SoSoValue data shows that these ETFs added over $3.2 billion in assets, bringing its total inflows to over $60 billion. BlackRock’s IBIT has over $96 billion in assets and is now in the top 20 of the biggest ETFs globally.

Bitcoin price has also jumped to a record high as investors predict that the Federal Reserve will cut interest rates this month. It has already slashed rates by 0.25%, bringing the benchmark rate to between 4.0% and 4.25%.

The possibility of more rate cuts rose after ADP and the Bureau of Labor Statistics published weak jobs numbers. A report by the BLS showed that the number of jobless Americans is higher than the number of vacancies.

Another report by ADP showed that the economy lost 36,000 jobs in September after shedding over 3,000 a month earlier. These numbers meant that the labor market is getting worse, which will put pressure on the Fed to act.

Seasonality has also played a role in the ongoing Bitcoin price rally. Historically, Bitcoin does well in October and the fourth quarter.

BTC price technical analysis

The weekly chart shows that the BTC price has been in a strong bull run this year. It has now jumped to a record high of over $125,500, moving away from the upper side of the bullish flag pattern.

Bitcoin price also moved to the strong pivot reverse point of the Murrey Math Lines tool and remains above all moving averages.

Therefore, the most likely scenario is where the coin continues rising as bulls target the ultimate resistance at $150,000. A move above that level will point to more gains to the extreme overshoot level at $175,000.