First Time in 3 Months: Bitcoin Fear and Greed Index Signals Greed

The metric that exhibits the final investor sentiment towards the main cryptocurrency, the BTC Fear and Greed Index, has lastly entered “greed” territory after spending the previous three months primarily in the “worry” or “excessive worry” zones.

This improvement indicators elevated confidence and a rising urge for food for the asset, however it could even be a precursor to a possible short-term pullback.

Back to ‘Greed’

The previous few days have been greater than constructive for the BTC bulls because the asset’s value briefly surged to a two-month peak of just about $98,000. This spike got here on the again of elevated geopolitical stress after the USA first launched a navy operation in Venezuela and later threatened to intervene in Iran, the place the native inhabitants has organised large protests in opposition to the regime.

Just not too long ago, the American president Donald Trump eased his tone, claiming that violence in the Asian nation has stopped and promised to not order an assault. The announcement brought on little to no volatility in BTC, which at present trades round $96,000, up 7% on a weekly foundation.

Somewhat anticipated, the asset’s rally has affected the favored Bitcoin Fear and Greed Index – a metric that tracks quite a few segments, reminiscent of value volatility, surveys, and social media feedback, to find out the momentary investor sentiment in direction of the cryptocurrency.

It has elevated to 61, thus coming into “greed” territory for the primary time because the starting of October final 12 months. This may sound like additional excellent news for the bulls because it displays stronger confidence and demand in the asset.

On the opposite hand, it may additionally imply that some buyers are pushed by FOMO relatively than fundamentals, suggesting the market can grow to be overheated. In some instances, reaching the “greed” and particularly the “excessive greed” zone may be an indication that the worth has tapped an area prime and is on the verge of a correction.

Further Pump on the Horizon?

Many market observers stand firmly in the bullish nook, anticipating BTC’s value to proceed rising in the close to future relatively than head south. X consumer Jelle believes a leap to $100,000 may happen in the approaching weeks, whereas Ali Martinez beforehand predicted that an ascent above $94,500 could also be adopted by a spike to as high as $105,921.

Meanwhile, whale and shark addresses that personal between 10 and 10,000 BTC have collectively accumulated greater than 32,600 BTC since January 10. At the identical time, shrimp wallets that maintain lower than 0.01 BTC have been on a promoting spree. According to the analytics platform Santiment, this could possibly be an ideal setup for a bull run.

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