Bitcoin News Today: Bitcoin Sentiment Turns Greed as Price Rebounds to $114,900

Bitcoin’s market sentiment has swung back into “Greed” territory, as reflected by the Bitcoin Fear & Greed Index, which currently stands at 64, up from a recent low of 53. This marks a clear turnaround from the brief dip into neutral and fear levels over the weekend. The index, which aggregates data from trading volume, volatility, social media trends, and other metrics, indicates that traders are once again showing optimism in Bitcoin’s near-term prospects [1].

The shift in sentiment coincided with Bitcoin’s price rebound from a low of $112,000 to approximately $114,900. Despite a 2.5% decline over the past week, the price has shown resilience, with buyers stepping in near key support levels. Long-term holders and market observers remain bullish, seeing the recent pullback as an opportunity rather than a sign of further deterioration [2]. The index's jump from 53 to 64 underscores the market’s rapid reaction to price movements and its sensitivity to short-term fluctuations [3].

Earlier in the week, Bitcoin fell into a sharp selloff, triggering panic among major holders and sending the broader market into a state of indecision. However, recent on-chain data suggests that selling has been concentrated among short-term holders, with medium-term holders showing restraint. This dynamic is reminiscent of the June stabilization around $99,800, where similar patterns preceded a rebound [4]. The market’s current behavior suggests that the support at $112,000 was effectively tested and rejected, with a 1.6% rebound reinforcing the presence of buying pressure at key levels [5].

The broader cryptocurrency market has also seen a modest recovery, with Ethereum and XRP posting gains of up to 8% and 5% in the last 24 hours. While Bitcoin remains the focal point, the positive momentum across the space has helped ease some of the recent pessimism [6]. Analysts note that expectations of a Federal Reserve rate cut have played a role in calming fears and encouraging a more optimistic outlook [7].

Despite the apparent turnaround, the market remains cautious. The 4-hour chart still shows bearish structure, and trading volume has yet to return to earlier levels. A sustained move above $114,100 could serve as confirmation of a reversal, but a pullback toward $110,000–$111,000 would test the strength of current buying momentum [8]. The Fear & Greed Index, while in the “Greed” range, is still some distance from the “Extreme Greed” levels seen at the end of July. If Bitcoin manages to stabilize above $114,000 and retest the $118,000–$120,000 resistance zone, the index could continue its upward trajectory [9].

Some analysts remain cautious, warning that a return to greed may signal an overbought condition and increase the risk of sudden reversals. While many see the recent rebound as a sign of Bitcoin’s strength, others view it as a reminder of the market’s volatility and the need for continued vigilance [10]. The key for traders now is to monitor both price action and sentiment closely, as an overheated market can be vulnerable to sharp corrections if expectations outpace fundamentals [11].

In summary, Bitcoin’s recent recovery and the shift in sentiment reflect a market testing the boundaries of its current support levels. While the path forward is not without uncertainty, the data and price action suggest that a local bottom may have been formed. Whether this leads to a sustained upward trend will depend on the strength of buying pressure and broader macroeconomic developments [12].

Source:

[1] https://coinmarketcap.com/community/articles/68917ae117af346e656c69ee/

[2] https://99bitcoins.com/news/altcoins/live-crypto-news-today-weekend-of-blood-with-btc-falling-to-112k-best-crypto-to-buy-now-as-the-market-bounces-back-up/

[3] https://discover.luno.com/daily-briefing/

[4] https://m.economicties.com/markets/cryptocurrency/crypto-news/bitcoin-steadies-near-114k-amid-fed-rate-cut-hopes-ethereum-cardano-xrp-jump-up-to-8/articleshow/123090770.cms

[5] https://coinpedia.org/news/robert-kiyosaki-if-bitcoin-crashes-in-august-ill-double-down/

[6] https://ambcrypto.com/btc-finds-support-at-112k-can-buyers-push-btc-to-120k-this-week/

[7] https://cryptonews.com/news/live-crypto-news-today-latest-updates-for-august-04-2025/