Bitcoin Regains $45,000 Level As Bulls Charge Once Again

Bitcoin BTC/USD regained the $45,654 price level, which until recently has not been seen since mid-May, as the coin was descending from its mid-April all-time high.

What Happened: According to CoinMarketCap data, Bitcoin is trading at over $45,200 as of press time — a price over 249.% higher than its mid-day low, just under $42,900.

Earlier today, the coin was in red after falling from its Sunday high of $45,160 and experiencing an increased level of volatility.

Despite Tuesday's Senate hearing on a bill that could purportedly kill swathes of the United States crypto industry, sentiment analysis service Crypto Fear & Green Index shows that the market is now in a Greed phase.

The current sentiment score is 64, where every score under 50 shows fear and any score over 50 indicates greed.

On-chain data suggests that the correction we saw does not indicate that we are in a long-term crypto bear market. Blockchain data firm Glassnode pointed out in a tweet published earlier today that despite a strong rally to $45,000, long-term Bitcoin holders did not liquidate their holdings.

In 2018, when a long-term bear market actually materialized, "old hands took exit liquidity on most relief rallies."

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In other words, most addresses who held Bitcoin for a year decided to hold coins that are 275% in profit, despite a 35% correction. This indicates that those holders are still bullish and expect the coin to go much higher soon.

This report also follows recent data indicating that Bitcoin has never been as undervalued under the stock-to-flow model as it has recently been when BTC price dipped under $30,000.

See also: Is Bitcoin a Good Investment?