Crypto News: Bitcoin, Ether, XRP Rally Pushes Crypto Sentiment Back to ‘Greed’ Amid $125K BTC Target
Key Takeaways:Crypto Fear & Greed Index returns to “Greed” with a score of 62, signaling renewed optimism.BTC, ETH, XRP, and SOL post modest gains, stabilizing after recent volatility.Analysts eye a potential Bitcoin breakout to $125,000, with resistance retests underway.Onchain data shows short-term Bitcoin holder profit-taking has cooled, reducing sell pressure.Last similar volatility spike preceded BTC’s rally from $70K to $100K in late 2024.The crypto market is showing signs of renewed optimism, with Bitcoin (BTC), Ether (ETH), and XRP posting modest gains that have pushed market sentiment back into “Greed” territory, according to the Crypto Fear & Greed Index.On Thursday, the index rose to a score of 62 out of 100, recovering from a brief dip into “Neutral” just a day earlier. The sentiment rebound follows several volatile sessions, including Bitcoin’s recent pullback to $112,000, just weeks after hitting an all-time high of $123,100 in mid-July.Bitcoin Price Stabilization Sparks Sentiment ShiftBitcoin climbed 1% over the past 24 hours to trade around $116,882, per Nansen data. While the move is modest, it appears to have restored short-term confidence in the market, as traders interpret the stabilization as a potential base for a new leg upward.“Bitcoin is back to resistance and consolidates here. This test should likely bring the bullish breakout,” said Michael van de Poppe, founder of MN Trading Capital.Meanwhile, Glassnode reported that profit-taking among Bitcoin short-term holders — those who have held BTC for under 155 days — has cooled significantly, reducing immediate sell pressure.Broad Crypto Market Gains as Altcoins Follow BTCOther major cryptocurrencies joined the rally:Ethereum (ETH) rose 2.37% to trade at $3,940XRP gained 2.14%, reaching $3.33Solana (SOL) climbed 3.26% to $176.68The synchronized move across large-cap assets further boosted sentiment, reinforcing the idea that the market may be entering another risk-on phase.Analysts Target $125K BTC as Volatility ReturnsSome traders believe Bitcoin is setting up for a major breakout similar to late 2024.“The last time Bitcoin looked like this was in November,” said trader Galaxy, referring to BTC’s move from $70,000 to $100,000 following Trump’s election win.“We could be looking at a similar structure now.”Trader Ted echoed the bullish view, predicting that Bitcoin may hit $125,000, a level that could trigger over $18 billion in liquidations across the derivatives market.Crypto sentiment has flipped back to Greed as Bitcoin consolidates near key resistance. With onchain metrics improving and analysts calling for a $125K breakout, market watchers are closely monitoring whether this consolidation will spark the next phase of the 2025 bull run.