Bitcoin Set for Potential Breakout

A widely followed crypto analyst suggests Bitcoin (BTC) is gearing up for a massive breakout.

In a new strategy session, pseudonymous crypto trader Inmortal informed his 230,900 followers on the social media platform X that the Crypto Fear and Greed Index indicates bullish potential for digital assets, having reached “extreme fear,” which is typically observed during historical market collapses.

The Crypto Fear and Greed Index measures market sentiment, with an extreme fear reading indicating oversold conditions and an extreme greed reading suggesting overbought conditions.

> “Fear is at the same levels we saw during the Covid-19 crash and 2022 bottom. All of this while the US announced a Bitcoin reserve.”
> Source: Inmortal/X

Inmortal notes that, based on historical precedence, market sentiment may remain in “extreme fear” for a duration of about one-and-a-half to five months.

> “Last cycle, we visited extreme fear three times, and these periods lasted between 50 and 160 days.”
> Source: Inmortal/X

The analyst believes Bitcoin may repeat a similar pattern from 2024, where BTC retested a support level that preceded substantial gains before reaching new all-time highs.

> “We are doing this again.”
> Source: Inmortal/X

Additionally, the analyst suggests Ethereum (ETH) could also be on the verge of a significant breakout similar to Bitcoin’s in 2020.

> “I should accept that it’s all over, as others have already done. I’m not saying it will happen, but if the bull run is not finished, we should see something similar to this.”
> Source: Inmortal/X

At the time of writing, Bitcoin is priced at $82,874, stable over the day, while Ethereum is trading at $1,881, down 3.5% in the last 24 hours.
> Generated Image: Midjourney