Bitcoin Dogs in focus as the crypto fear and greed index rises

Cryptocurrency prices have staged a strong comeback in the past few days as investors cheered key macro events in the United States and other key countries in Europe. 

Bitcoin has recovered from this month’s low of $49,000 to over $64,000, meaning that it is in a technical bull market. The total market cap of all cryptocurrencies has soared to over $2.25 trillion. 

Meme coins like Dogwifhat, Bonk, and Pepe have also jumped. Notably, other AI focused tokens like Render (RNDR), Near Protocol (NEAR), and The Graph (GRT) have also soared ahead of the upcoming Nvidia earnings. 

However, Bitcoin Dogs (DOGS), has not done well as it has retreated sharply from its highest point last week. It was trading at $0.002 on Sunday, as it remains in a price-discovery phase.

Crypto fear and greed index has risen

The ongoing crypto recovery happened as the sentiment in the financial market improved. American stocks have soared, with the Dow Jones and the S&P 500 indices nearing their all-time highs. Other global indices like the Nikkei 225 and Nifty 50 index have jumped sharply this year.

At the same time, the US dollar index has crashed from the year-to-date high of $106 to $100. Most notably, there are signs that investors are getting a bit greedy. The fear and greed index has moved from 35 last week to the neutral point at 53. 

The crypto fear and greed index has also jumped sharply, moving to the neutral point of 56 and is nearing the greed zone.

This performance is primarily because sentiment in the market has improved recently as the Federal Reserve has committed to start cutting interest rates. Investors have a recency bias as they remember what happened when the bank started cutting in 2020 at the onset of the pandemic. 

At the time, stocks surged and cryptocurrencies reached their all-time highs as borrowing costs fell. 

Therefore, there is a likelihood that the trend will resume. Additionally, Bitcoin has formed a falling broadening wedge chart pattern, which is popular bullish sign. It has also moved above the 50-day and 100-day moving averages, meaning that a rebound is possible.

Bitcoin Dogs could stage a comeback

Therefore, analysts believe that the highly embattled Bitcoin Dogs could stage a comeback after the recent plunge.

This retreat is normal for a recently-launched cryptocurrency because of profit-taking among investors. In most cases, many token buyers sell their tokens when they become available in decentralized and centralized exchanges. 

This week, Bitcoin Dogs, which raised over $13 million in its presale, got listed in top exchanges like OKX and MEXC. Some of the top catalysts to watch will be more exchange listings, the end of capitulation by existing holders, and the broader cryptocurrency market rally. If this trend happens, then there is a chance that the token will rebound to the psychological point at $0.10, which is over 40% from the current level. Learn more about Bitcoin Dogs here.

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