The first cryptocurrency briefly rose above $39,000 after testing ahead of early February lows just above $36,000.

Bitcoin's fear and greed index is up 5 points in a day to 25, but is still in a state of "extreme fear".

Has Bitcoin hit bottom?

The rebound of bitcoin the day before began along with the growth of European stock indices at the beginning of the day and continued on Wednesday against the background of the growth of risky assets and the weakening of the dollar.

The aggravation of geopolitical tensions around Ukraine has recently led to an increase in the correlation between the first cryptocurrency and the US stock index S&P 500. This is stated in an analytical report by Arcane Research, writes forklog.

The 90-day correlation between BTC and the US economy barometer hit its highest level since October 2020. By contrast, the statistical relationship between bitcoin and gold has turned negative.

So far, the rebound of risky assets, which include cryptocurrencies, can be considered as a technical correction within a downtrend. Bitcoin is trying to correct from levels close to the lows of February, but it is probably not the "bottom" yet.

“Expectations of a rate hike by the US Federal Reserve and rising geopolitical tensions are putting pressure on all risky assets. Based on the history, it would be wise to consider buying BTC at levels of the fear and greed index in the region of 10, ”the FxPro analyst team notes.

Meanwhile, Ricardo Salinas Pliego, one of the richest Mexican billionaires, called for not selling bitcoin in the fall. In his opinion, BTC will grow in the long term.