Bitcoin (BTC) Price Continues \'Phenomenal Retest\' as Market Sentiment Lurches Toward \'Extreme Greed\'

Bitcoin (BTC) price action spiked to new July highs over the weekend as the largest cryptocurrency held onto its recovery in out-of-hours trading

Bitcoin (BTC) price action spiked to new July highs over the weekend as BTC continued to add to its recovery from recent lows.

Bitcoin price saw a phenomenal retest of old all-time highs as support.

After bottoming out at $28,800 on major cryptocurrency exchange Binance on July 19, BTC/USD price action began to rally. The price of Bitcoin rallied as high as $67,160 on the Bitstamp exchange on July 20.

Bitcoin price continues "phenomenal retest"

Bitcoin price rallied by 10.4% this week and 6.6% for the month of July at the time of writing, according to data from cryptocurrency price tracking platform CoinGlass.

Unsurprisingly, market participants showed no shortage of optimism as a result of the recent price action.

Popular trader Benjamin Cowen expressed hope that the 20-week simple moving average (SMA) at $65,650 will act as support going forward.

“Extremely explosive move by BTC off the lower trend line back above its BMSB,” the trader wrote in a post on X.

Cowen referred to the Bitcoin bull market support band, an area of interest between the 20-week SMA and the 21-week exponential moving average (EMA). As previously reported by Cointelegraph, BTC/USD price action traded above the band for the majority of its latest bull market.

Trader and analyst Rekt Capital focused on the relative insignificance of Bitcoin's correction since March's new all-time highs.

On monthly timeframes, BTC/USD price action had successfully retested its old 2021 all-time high as support in part of an ongoing resistance/support flip, the trader noted.

“Phenomenal retest of the old All Time High resistance (red) as new major support (green),” Capital wrote in the commentary that accompanied an explanatory chart.

Crypto sentiment lurches toward "extreme greed"

In further evidence of the extent of the crypto recovery, crypto sentiment reached its "greediest" in over a month, as measured by the Crypto Fear & Greed Index.

The classic sentiment gauge, which uses a basket of factors to compute an aggregate mood score for crypto markets, stood just below "extreme greed" on the day at 74/100.

Just a week ago, the Index measured 25/100, corresponding to the inverse scenario, "extreme fear," characterizing the average trader's market perspective.

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