Posted on

Bitcoin Extreme Greed Is Nearly Here: Will This Lead To A Top?

Data shows the Bitcoin market sentiment has nearly turned to extreme greed as the cryptocurrency’s price has rallied to the $68,000 mark.

Bitcoin Fear & Greed Index Is Currently Inside The Greed Region

The “Fear & Greed Index” is an indicator created by Alternative that tells us about the average sentiment present among traders in the Bitcoin and wider cryptocurrency markets. This index makes use of the data of the following five factors in order to determine the sentiment: trading volume, volatility, social media sentiment, market cap dominance, and Google Trends. Once found, it represents the market mentality as a score between 0 and 100.

When the metric has a value greater than 53, it means the traders as a whole share a sentiment of greed right now. On the other hand, it being under the 47 mark implies the dominance of fear in the market. The territory in-between these two corresponds to a net neutral mentality.

Besides these three main sentiment zones, there are also two special regions called the extreme fear and the extreme greed. The former of these occurs at 25 and under, while the latter at 75 and above.

Now, here is what the latest value of the Bitcoin Fear & Greed Index has been like:

Bitcoin Greed

As is visible above, the indicator has a value of 73, which suggests that the investors are currently showing a significant amount of greed. This is a notable change from how the mood in the market was last week, as the index had declined into the fear zone then.

The below chart shows how the value of the Bitcoin Fear & Greed Index has changed over the past year:

Bitcoin Fear & Greed Index

From the graph, it’s visible that this latest uplift in the sentiment, which has come as a result of the asset’s rally to $68,000, has taken the index to the highest value since the end of July. Back then, the high sentiment values had led to a top for the cryptocurrency. This type of pattern is something that has actually been witnessed throughout history.

It turns out that Bitcoin has a tendency to move in the direction opposite to what the crowd is expecting and the probability of such a contrary move increases the more the traders lean towards one side.

In the extreme regions, this likelihood is the strongest, so tops and bottoms have often formed when the investors have shared these sentiments. The current value of the index is just outside the extreme greed zone, so a top could become likely for the asset should the investor mentality continue to improve.

The sentiment may also not even have to improve further for such a scenario to follow out, as the top back in July had occurred when the index had a value of 74, only one unit greater than the current one.

BTC Price

At the time of writing, Bitcoin is trading at around $68,000, up more than 9% over the last week.

Bitcoin Price Chart

Posted on

Bitcoin ‘Extreme Greed’ Is Almost Here: Price Bottom Now Close?

Data shows the Bitcoin sentiment is close to entering into the extreme greed zone. Here’s what this could mean for the cryptocurrency’s price.

Bitcoin Fear & Greed Index Has Continued To Decline Recently

The “Fear & Greed Index” is an indicator developed by Alternative that tells us about the average sentiment that traders in the Bitcoin and wider cryptocurrency market currently share.

The index uses five factors to determine this sentiment: volatility, trading volume, social media, market cap dominance, and Google Trends. The metric uses a numeric scale that runs from zero to hundred for representing the mentality.

All values of the indicator above the 53 mark suggest the presence of greed among the investors, while those below 47 imply the dominance of fear. The region in between these two thresholds correlates to a neutral sentiment.

Now, here is what the Bitcoin Fear & Greed Index is looking like right now:

Bitcoin Fear & Greed Index

As is visible above, Bitcoin Fear & Greed currently has a value of 28, meaning that the average investor is showing fear. The degree of fearfulness must also be quite notable, as this current value is pretty deep into the territory.

In fact, the latest level of the indicator is quite close to a special region called the “extreme fear.” Investors display extreme fear when the index goes under 25. There is also a similar zone for the greed side as well, which is known as “extreme greed” and occurs above 75.

During the first half of last month, the metric had been in or close to the latter region, but the recent downturn in the market has sharply degraded the sentiment to the other end of the spectrum.

Bitcoin Fear & Greed Index

Historically, Bitcoin and other cryptocurrencies have tended to show moves opposite to what the majority are expecting. The stronger the crowd’s expectation gets, the higher the probability of such a contrary move becomes.

The extreme sentiments are where the traders are leaning towards one direction too much. As such, major tops and bottoms in the asset have usually formed when the index has been in these zones.

Because of this fact, some traders prefer to buy when investors are showing extreme fear and sell during extreme greed. This trading philosophy is popularly called “contrarian investing.” Warren Buffet’s famous quote sums up the idea, “be fearful when others are greedy, and greedy when others are fearful.”

As the Bitcoin Fear & Greed index is approaching the extreme fear territory, it’s possible that the cryptocurrency could once again show profitable entry points soon, if the past is anything to go by.

BTC Price

Bitcoin has so far been unable to make too much recovery from its recent crash, as its price is still trading around $56,700.

Bitcoin Price Chart

Posted on

Bitcoin Investors Beware: Extreme Greed Has Returned In Crypto

Data shows that cryptocurrency investors’ sentiment has surged to extreme greed recently, a sign that may not be ideal for Bitcoin.

Bitcoin Fear & Greed Index Is In The Extreme Greed Territory Right Now

The “Fear & Greed Index” is an indicator created by Alternative that keeps track of the average sentiment present among the traders in the Bitcoin and wider cryptocurrency market.

The index represents this sentiment as a number between zero and 100. To calculate the score, the metric takes into account five factors: volatility, trading volume, social media sentiment, market cap dominance, and Google Trends.

When the Fear & Greed Index has a value greater than 54, the investors are greedy. On the other hand, values under 46 imply that the market is fearful currently. The region between these two cutoffs signifies the territory of a neutral mentality.

In addition to these three core sentiments, the index has two special zones: “extreme greed” and “extreme fear.” The former occurs when the metric surpasses 75, while the latter occurs at levels under 25.

Now, here is what the sentiment in the Bitcoin market looks like right now based on the Fear & Greed Index:

Bitcoin Extreme Greed

As is visible above, the Bitcoin Fear & Greed Index has a value of 77 at the moment, which suggests that investors as a whole feel extreme greed.

The current value means, however, that the market is only just inside this territory. Earlier, the indicator had a lower value, but the latest price surge beyond the $71,000 level has meant that investors have openly jumped on the bull bandwagon.

Below is a chart showing how the sector’s sentiment has changed over the past year.

Bitcoin Fear & Greed Index

The graph shows that the latest values of the Fear & Greed Index are the highest that the cryptocurrency has witnessed since the first half of April.

Between then and now, the only other time the indicator stepped inside the extreme greed zone was during a stretch in May. During this phase, 76 was the highest the metric could go, which is right at the region’s boundary.

Historically, the price of Bitcoin has tended to go against the majority’s expectations, and the stronger this expectation has become, the more likely it is that such a contrary move will occur.

Since the extreme sentiment zones are where the market turns the most lopsided, reversals are probable. Naturally, extreme fear is where bottoms happen, while extreme greed can lead to tops.

As such, the latest breach into the extreme greed territory could perhaps be bad news for the recovery rally. It should be noted, though, that the current level of the indicator may still not be too high compared to past bull run levels. For example, the rally to the new all-time high price in March saw the indicator peak at 90.

BTC Price

So far in its recovery run, Bitcoin has risen towards the $71,500 level.

Bitcoin Price Chart

Posted on

Bitcoin Traders No Longer Extremely Greedy: Rebound Signal?

Data shows that Bitcoin investor sentiment has cooled to the lowest level since February, something that could facilitate a rebound in the price.

Bitcoin Fear & Greed Index Now Points At Just ‘Greed’

The “Fear & Greed Index” is an indicator created by Alternative that tells us about the general sentiment among investors in the Bitcoin and broader cryptocurrency sector.

This metric uses a numeric scale from zero to hundred to represent the sentiment. To calculate the score, the index considers the data of five factors: volatility, trading volume, social media sentiment, market cap dominance, and Google Trends.

All values of the indicator above the 53 mark suggest the presence of greed among the investors, while below the 47 level implies a fearful market. The region between these two corresponds to the neutral sentiment.

Here is how the latest value of the Bitcoin Fear & Greed Index looks:

Bitcoin Fear & Greed Index

As is visible above, the Bitcoin Fear & Greed Index currently has a value of 71, implying that the investors share a majority sentiment of greed. Just yesterday, the index’s value had been notably higher than this, implying that there has been a bit of a cooldown of sentiment in the past 24 hours.

Below is a chart that shows the trend in the index over the past year.

Bitcoin Fear & Greed Index

Besides the three core sentiments, there are also two “extreme” sentiments: extreme greed and extreme fear. The former occurs at values above 75, while the latter occurs under 25.

The Bitcoin Fear & Greed Index was 79 yesterday, implying that the market had been extremely greedy. The indicator has been regularly inside this zone for the past month, so the current normal greed values go against the trend.

The sentiment among investors has naturally been so high recently because the BTC price has gone through a sharp rally in this period and has explored fresh all-time highs (ATHs).

The Bitcoin price has historically tended to go against the majority’s expectations. And the stronger this expectation has been, the more likely such a contrary move will occur.

Due to this reason, the extreme sentiments have been where reversals in the asset have been the most probable to take place in the past. For instance, the current ATH of the asset formed when the index was at a value of 88.

With the recent price drawdown, sentiment has also taken a hit. The fact that it has fallen out of the extreme greed zone, though, may be conducive to a bottom forming. The earlier bottom, around 20 March, also formed when the index exited the zone.

The current level of the Bitcoin Fear & Greed Index is not only lower than it was then but also the lowest since 11 February, when the asset was still trading around $48,000.

BTC Price

Bitcoin is now down to the $65,800 level after facing a drawdown of more than 7% over the last few days.

Bitcoin Price Chart

Posted on

Bitcoin Sentiment Returns To Extreme Greed As BTC Breaks $71,000

Data shows the Bitcoin market sentiment has returned to the extreme greed territory as BTC has registered its rally beyond the $71,000 level.

Bitcoin Fear & Greed Index Now Points To “Extreme Greed”

The “Fear & Greed Index” is an indicator made by Alternative that tells us about the general sentiment among the investors in the Bitcoin and wider cryptocurrency market.

This index represents the sentiment as a score between zero and hundred. To calculate this value, the indicator takes into account the data of these factors: volatility, trading volume, social media sentiment, market cap dominance, and Google Trends.

When the indicator has a value of 46 or less, it means that the average investor holds a sentiment of fear right now. On the other hand, a value of 54 or more implies the market shares a majority mentality of greed. Naturally, the region in-between these two (47 to 53) corresponds to the neutral sentiment.

Now, here is what the latest value of the Bitcoin Fear & Greed Index looks like:

Bitcoin Fear & Greed Index

As is visible above, the Bitcoin Fear & Greed Index is at 81 right now, meaning that it’s deep into the greed region. In fact, this value is so deep that it’s inside a territory known as “extreme greed.”

Extreme greed occurs when the index hits values higher than 75. Fear also has its own extreme region; this one occupying values under 25. Historically, these two sentiments have proven to be particularly significant for the market.

BTC and other assets in the sector have often tended to move in the opposite direction from what the majority expect. In the territory of the extreme sentiments, this expectation is naturally the strongest, and hence, the probability of a contrary move taking place is also the highest.

Because of this reason, major tops and bottoms in Bitcoin’s price have typically taken shape when the cryptocurrency has been inside the respective extreme zones.

Earlier in the month, the Fear & Greed Index had assumed especially high extreme greed levels, as the asset’s rally towards new all-time highs (ATHs) had occurred.

Two of the major tops in this period, including the current ATH, coincided with peaks in the indicator, implying that the overheated sentiment may have once again played a role.

Bitcoin Fear & Greed Index

With the recent drawdown in the asset, though, the sentiment also cooled off and exited out of the extreme greed territory, as is visible in the above chart. In bullish periods, the sentiment retreading back to the normal greed region can be a positive sign for fresh upward moves to start.

And indeed, this has followed for the cryptocurrency this time as well, as its price has made notable recovery over the past couple of days. With the coin making a return back towards $71,000, the sentiment has also heated up again, hence why the index’s latest value is pointing at extreme greed.

The aforementioned tops from earlier in the month occurred at Fear & Greed Index values of 90 and 88, respectively, suggesting that the current extreme greed value of 81 may not be too high for another peak to be probable.

BTC Price

Bitcoin had broken above the $71,000 level earlier in the day, but the digital asset has since registered a bit of a pullback towards $70,700.

Bitcoin Price Chart

Posted on

Bitcoin Sentiment Cools Off, Price Rebound Soon?

The Bitcoin Fear & Greed Index shows that the sentiment around the asset has cooled off a bit recently, something that could pave the way for a rebound.

Bitcoin Fear & Greed Index Has Gone Through Some Decline Recently

The “Fear & Greed Index” is an indicator created by Alternative that tells us about the average sentiment present among the investors in the Bitcoin and wider cryptocurrency market

To determine the trader mentality, the index takes into consideration for these five factors: volatility, trading volume, social media sentiment, market cap dominance, and Google Trends.

The metric uses a numeric scale that runs from zero to hundred for representing this sentiment. A score of 46 or less implies the presence of fear among the investors, while that of 54 and above suggests greed in the market.

The territory between these two (47 to 53) naturally corresponds to the neutral mentality. Besides these three sentiments, there are also two extreme sentiments called “extreme greed” and “extreme fear.”

The extreme greed occurs at values above 75, while the extreme fear takes place below 25. Historically, these two sentiments have been quite relevant for BTC’s trajectory.

Tops have generally tended to form when the investors have held the former sentiment, while bottoms have been probable to happen when the market has been in the latter region.

At present, the traders are holding a mentality of extreme greed, as the latest data of the Bitcoin Fear & Greed Index shows.

Bitcoin Fear & Greed Index

As is visible, the indicator’s value is 77 right now, meaning that while it’s indeed inside extreme greed, it’s only so just. This is a fresh change from how it has been recently, as the chart below displays.

Bitcoin Extreme Greed

From the graph, it’s visible that the Bitcoin Fear & Greed Index has mostly stayed deep inside the extreme greed region recently. On the 14th of this month, the indicator hit the 88 mark, and alongside this high, the BTC price registered its current all-time high of about $73,800.

Since this peak, though, the asset has plunged, and it appears that alongside it, so has the sentiment among the traders. As mentioned earlier, tops have been more likely to occur when the market has shared a mentality of extreme greed and this probability has generally only gone up the more extreme levels the metric has hit.

This could perhaps explain why the recent top occurred when it did. Another top this month, the one that took place on the 5th, also coincided with high values in the Fear & Greed Index (a peak of 90 this time).

Shortly after this earlier peak and the plummet in the cryptocurrency that had followed, the asset found its bottom as the metric briefly exited the extreme greed region.

As the Bitcoin Fear & Greed Index is once again looking to dip outside this territory, it’s possible that a bottom may be near for the price this time as well. It now remains to be seen if the sentiment would cool down enough in the coming days so as to leave the extreme region behind, at least temporarily.

BTC Price

Bitcoin had plunged towards $64,500 during the weekend, but it seems the coin has made some recovery in the past day as it’s now back at $68,000.

Bitcoin Price Chart

Posted on

Bitcoin Extreme Greed At Levels Higher Than Nov. 2021 Peak, Top Signal?

Data shows the Bitcoin sentiment has now reached extreme greed levels higher than even those at the price all-time high (ATH) in November 2021.

Bitcoin Fear & Greed Index Is Deep Inside Extreme Greed Territory Now

The “Fear & Greed Index” is an indicator created by Alternative that keeps track of the general sentiment present among the investors in the Bitcoin and wider cryptocurrency market right now.

The metric represents this average sentiment in the form of a score lying in the zero to hundred range. To calculate this score, the index takes into account the following five factors: volatility, trading volume, social media sentiment, market cap dominance, and Google Trends.

When the indicator shows a value less than 47, it means that the sentiment around the sector is that of fear. On the other hand, the index being above the 53 mark implies the presence of greed among the investors. Naturally, the region between these two territories belongs to the neutral mentality.

Besides these three main sentiments, there are two “extreme” sentiments called extreme fear and extreme greed. The former of these occurs at and below 25, while the latter is 75 and above.

Now, here is what the Bitcoin Fear & Greed Index currently looks like:

Bitcoin Fear & Greed Index

As is visible above, the Bitcoin Fear & Greed Index’s current value is 90, which means that the investors are holding a strong sentiment of extreme greed. This latest value is quite the jump from the sentiment from yesterday, when the index was around 82.

The reason behind this sharp increase in the indicator is obviously because of the fact that the cryptocurrency’s price has been pushing towards a new all-time high during its latest rally.

The current level of the Fear & Greed Index isn’t only high compared to the recent trend, but also when considering the historical data. The below chart shows how the metric’s value has fluctuated since its inception back in 2018:

Bitcoin Extreme Greed

As displayed in the graph, the Bitcoin Fear & Greed Index has now surpassed the level that it assumed during the November 2021 price all-time high, as it stands at values just below those observed between late 2020 and early 2021.

Besides this period, there has only been one other instance in the history of the metric where it has achieved levels higher than now: the rally peak during mid-2019.

Historically, Bitcoin has tended to move against the expectations of the majority, and as this expectation has leaned more towards one side, the probability of such a contrary move taking place has only gone up.

The top in the 2019 rally and November 2021 are just two such examples of this pattern in action. As such, it’s possible that the current extreme levels of the indicator mean that the price is at risk of forming a top right now.

It should be noted, however, that a top doesn’t necessarily have to immediately follow, as during the first half 2021 bull run, the metric was able to maintain at even higher levels for a while, without the rally being compromised.

BTC Price

Bitcoin was on the brink of setting a new all-time high just earlier, but its price has since cooled off towards the $66,700 level.

Bitcoin Price Chart

Posted on

Extreme Greed Is Back For Bitcoin, Is It Time To Sell?

Data shows extreme greed sentiment has made a return among the Bitcoin investors after the cryptocurrency’s price has broken above $50,000.

Bitcoin Fear & Greed Index Now Points Towards “Extreme Greed”

The “Fear & Greed Index” refers to an indicator that tells us about the general sentiment among Bitcoin traders and broader cryptocurrency sectors.

The metric represents this sentiment using a numerical scale from zero to hundred. According to Alternative, its creator, the index calculates this score using five factors: volatility, trading volume, social media sentiment, market cap dominance, and Google Trends.

When the Fear & Greed Index has a value of 54 or greater, the investors now share a sentiment of greed. On the other hand, values of 46 or less imply the presence of fear among the traders.

The region between these two ranges (values 47 to 53) corresponds to the territory of “neutral” sentiment. In addition to these three core sentiments, “extreme fear” and “extreme greed” occur at the deep ends of the fear and greed ranges.

Here is what the Bitcoin Fear & Greed index looks like right now to see which of these regions the market is in:

Bitcoin Fear & Greed Index

As displayed above, the Bitcoin Fear & Greed Index has surpassed the 75 threshold for extreme greed during the past day and has attained a value of 79. The metric was at 70 yesterday, so it has seen a bit of a jump in just the last 24 hours.

This surge in sentiment from greed to extreme greed has occurred as cryptocurrency broke past the $50,000 barrier for the first time since December 2021.

Historically, the extreme sentiments have been quite significant for the asset, as major bottoms and tops for the price have occurred in these regions. This relationship between the two, however, has been inverse.

Extreme fear has been when bottoms have taken shape, while extreme greed has been where tops have formed. In the past, Bitcoin has usually tended to move against the majority’s expectations. This expectation is the strongest in these ranges, so it makes sense that a reversal is the primarily likely here.

Followers of a trading philosophy called “contrarian investing” exploit this fact to time their buying and selling moves. “Be fearful when others are greedy, and greedy when others are fearful” is a famous quote from Warren Buffet that sums up the idea.

As the chart below shows, the last time the Fear & Greed Index attained extreme greed levels was around the time of the spot ETF approval.

Bitcoin Extreme Greed

As BTC investors are very well aware, the coin hit a top coinciding with the event as the market took to selling the news. Since the sentiment is now back inside extreme greed with its latest surge, another similar reversal point may be close for its price.

Perhaps it’s at a time like this when a contrarian investor would consider moving towards selling, going against the hype and euphoria floating around the market.

BTC Price

Bitcoin has enjoyed a surge of over 4% in the past day, which has taken its price towards the $50,000 mark.

Bitcoin Price Chart

Posted on

Bitcoin Flies Above $47,300, But Watch Out For Extreme Greed

Bitcoin is finally showing a sustained bullish push as it has now broken above $47,300, but overly positive sentiment can be an obstacle to this rally.

Bitcoin Fear & Greed Index Suggests Market Is Nearing Extreme Greed

The “Fear & Greed Index” is an indicator that tells us about the general sentiment among the investors in the Bitcoin and wider cryptocurrency sector. According to Alternative, its creator, the index takes into account five factors to calculate this sentiment.

These are volatility, market volume, social media sentiment, market cap dominance, and Google Trends. The index outputs the sentiment as a number lying between zero to hundred.

All values of 46 and under imply the investors are fearful, while those of 54 or over suggest the presence of greed in the market. The region between 47 and 53 corresponds to the region of neutral sentiment.

Now, here is what the Fear & Greed Index looks like for Bitcoin right now to see which of these regions the market stands in at present:

Bitcoin Fear & Greed Index

As is visible above, the Bitcoin Fear & Greed Index has a value of 72 at the moment, implying that the majority of the investors in the space share a greedy mentality.

Besides the three core sentiments mentioned earlier, there are also two extreme ones: the extreme fear and extreme greed. The former of these occurs at values of 25 and under, while the latter takes place at 75 and above.

Historically, these two sentiments, in particular, have held great significance for the cryptocurrency’s trajectory. Generally, at any point, the asset is more likely to move against the expectations of the majority, and in these extreme regions, this expectation becomes the strongest.

As such, these sentiments have been where major reversals in the asset have been the most likely to occur. Followers of a trading philosophy called “contrarian investing” exploit this fact to time their buying and selling moves. Warren Buffet‘s famous quote sums up the idea, “Be fearful when others are greedy, and greedy when others are fearful.”

At a value of 72, the Bitcoin market is quite close to entering into the extreme greed region right now. Just yesterday, the metric had a value of 66, which means there has been some jump in just the past 24 hours.

Bitcoin Extreme Greed

This increase in the index has naturally come because of the bullish momentum that the asset has enjoyed in the past day. Any further improvements in sentiment, however, may be alarming, as the metric would then enter into the extreme greed territory.

The last time that the Bitcoin Fear & Greed Index surged into extreme greed values was around the time of the approval of the spot exchange-traded funds (ETFs). As it happened, the coin hit its top, coinciding with this overly bullish mentality.

Thus, if this precedence is anything to go by, any visit into the territory in the coming days may serve as a warning that a top is near for the cryptocurrency.

BTC Price

Bitcoin has enjoyed an uplift of over 6% during the past 24 hours as its price has cleared the $47,300 level.

Bitcoin Price Chart

Posted on

Bitcoin Sentiment Suggests Serious Greed, But Will A Correction Come?

As Bitcoin made a new all-time high above $68k, the crypto market sentiment changed to extreme greed. Periods of such sentiment have lead to corrections in the past, but will the trend be similar this time?

Bitcoin Fear And Greed Index Starts Pointing At Extreme Greed

As per the latest weekly report from Arcane Research, the fear and greed index is now pointing at extreme greed as BTC makes a new ATH.

The fear and greed index is a Bitcoin indicator that shows what the current crypto market sentiment is. The metric uses a numeric scale that ranges from zero to hundred to display the sentiment.

Values below fifty signal that the market is currently sharing fear, while values above it imply investors are becoming greedy.

If the indicator’s value goes above 75 or below 25, then it means the market is showing extreme greed or extreme fear, respectively.

Periods with extreme values suggest the market could witness a reversal soon. A correction may follow extreme greed values, and a change to uptrend may follow from an extremely fearful market.

Related Reading | How Bitcoin Has Performed Compared To Top Stocks

Here is where the current Bitcoin fear and greed index needle points at:

Looks like the crypto market is seriously greedy at the moment | Source: The Arcane Research Weekly Update – Week 44

As the above meter shows, the current market sentiment is that of extreme greed. This is an increase from last week as the values were in the normal greed territory then. This change is caused by BTC reaching a new ATH.

Related Reading | S2F Creator PlanB Believes In $98k Nov Target For Bitcoin

The market was also greedy last month. The below chart shows the trend in the value of the indicator over the past year.

Crypto market sentiment has been in the greed territory for a while now | Source: The Arcane Research Weekly Update Week 44

The market has now seen one month straight of extreme greed or greed sentiment. The last time this happened was from August to September, and the streak then ended with the El Salvador day crash.

This period of greed might suffer a similar fate. However, the report notes that during Spring the indicator’s value remained consistently high for a prolonged period. So it’s possible a similar trend could be seen in the coming weeks instead.

BTC Price

At the time of writing, Bitcoin’s price floats around $66.5k, up 4% in the last seven days. Over the past month, the crypto has gained 20% in value.

Here is a chart that shows the trend in the value of the coin over the last five days:

BTC’s price made a new ATH today, but has since come down a bit | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research

Posted on

Fickle Bitcoin Market Surges From Fear To Greed In A Flash

The Bitcoin fear and greed index has started to quickly change to extreme greed as the crypto continues to rally up.

Bitcoin Fear And Greed Needle Starts Pointing At Extreme Greed

As per the latest weekly report from Arcane Research, the fear and greed index quickly turned to extreme greed values last week.

The “fear and greed index” is a Bitcoin indicator that shows the general crypto market sentiment at the time. The metric uses a numerical scale of one to hundred for displaying the different sentiments.

Values close to zero fall under the “extreme fear” category while values at the other end imply “extreme greed.” When the indicator shows neither too large, nor too low values, the sentiment falls under either “fear” or “greed” depending on which side around 50 the value is.

Now, here is a chart that shows how the indicator’s value has changed over the years for Bitcoin:

Looks like the crypto market has quickly turned greedy | Source: The Arcane Research Weekly Update – Week 40

As the above graph shows, the sentiment had turned greedy last week after a fearful September, and the values are now entering into the extreme greed category.

While the month of September had some moves up, it also had several price crashes, and that’s why the sentiment was that of fear for the most part.

Related Reading | TA: Ethereum Follows Bitcoin, Why ETH Could Surge Towards $4K

The indicator dipped all the way down to extreme fear on 30th September, but in under two weeks the sentiment has already rebounded back to extreme greed. The report notes that this shows how fast the sentiment can change among the crypto market.

Right now, BTC is showing some strong momentum upwards as the coin broke $58k for the first time since May today. An on-chain indicator shows that both the long-term holders and the short-term holders are in profit right now so it’s not a surprise that the market has started turning greedy.

Related Reading | Why Bitcoin Could Be Far From $100,000, Says Fidelity Analyst

BTC Price

At the time of writing, Bitcoin’s price floats around $57.2k, up 6% in the last seven days. Over the last month, the crypto has gained 22% in value.

The below chart shows the trend in the price of the coin over the last five days:

Bitcoin’s price shows a lot of volatility while keeping up an overall upwards trend | Source: BTCUSD on TradingView

Usually, when the crypto market sentiment reaches the extreme greed territory, the market observes a correction at least in the short term. The BTC price did have a minor dip yesterday and the fear and greed values have left the extreme greed territory today as the indicator now points at greed.