Bitcoin price remained under pressure on Thursday as investors remained in the sidelines amid elevated fear. BTC was trading at $91,940, down sharply from the year-to-date high of $126,300. This article explores some of the top reasons why the coin may rebound soon.
Bitcoin price to rebound as Crypto Fear and Greed Index slumps
One of the main potential catalysts for Bitcoin price is that investors are increasingly fearful. The Crypto Fear and Greed Index has dropped to the extreme fear zone of 15, its lowest level since April this year. It has been in a freefall after peaking at the greed zone of 80.
In theory, Bitcoin price and other cryptocurrencies should drop when market participants are fearful. In reality, however, Bitcoin and altcoins normally rebound when the fear situation gets extreme.
A good example of this is what happened in April this year when Bitcoin and the Fear and Greed Index dropped after Donald Trump announced his reciprocal tariffs. Bitcoin price jumped to a new record high in May.
The same happens in the stock market, which normally rebounds whenever the CNN Money Fear and Greed Index tumbles to the extreme fear zone. For example, this happened in April when the index moved below 10 as the stock market plunged. Today, the top US indices like the S&P 500 and the Dow Jones are hovering near their all-time highs.
Bitcoin price always emerges from bear markets
The other main reason why Bitcoin’s price may rebound soon is that history is on its side.
Bitcoin was launched in 2009 and has succeeded in moving from below $1 to the current $91,000. Its surge to the all-time high of $126,000 has never been linear. Instead, it has always had major reversals over time.
A good example is the significant plunge that happened in 2022 as the Federal Reserve hiked interest rates and as companies like Terra and FTX imploded.
The most recent situation is when the Bitcoin price plunged by about 13% from its highest level on August 12 and its lowest level on September 1, and then rebounded to a record high.
BTC price has become oversold
The other main reason why the Bitcoin price may rebound is that it has become highly oversold in the past few days during the ongoing crash.
For example, the Relative Strength Index (RSI) has moved to the oversold level of 30. Similarly, the Money Flow Index (MFI), which is a unique form of RSI, has moved to the oversold level of 24.
The Awesome Oscillator has moved below the zero line since October 12. Therefore, there is a likelihood that the coin will rebound as investors start to buy the dip soon.
Strong Nvidia earnings to boost the crypto market
The other potential catalyst for Bitcoin price is the recent Nvidia earnings, which showed that its business was doing better than expected.
Data showed that Nvidia’s revenue jumped to $57 billion in the last quarter, with its management predicting that it will jump to over $65 billion in the current quarter.
The strong financial results boosted the stock market, with the Nasdaq 100 and the S&P 500 indices rising by over 1%. Nvidia itself jumped by over 5% in the premarket session. These numbers mean that other assets like the crypto market will continue rebounding.
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