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

The metric that reveals 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 “concern” or “excessive concern” 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 worth briefly surged to a two-month peak of virtually $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 huge 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 the moment 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, resembling worth volatility, surveys, and social media feedback, to find out the momentary investor sentiment in direction of the cryptocurrency.

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

On the opposite hand, it might additionally imply that some traders are pushed by FOMO reasonably than fundamentals, suggesting the market can turn out to be overheated. In some circumstances, reaching the “greed” and particularly the “excessive greed” zone is perhaps an indication that the value has tapped a neighborhood 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 worth to proceed rising in the close to future reasonably than head south. X consumer Jelle believes a soar to $100,000 might 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 may very well be an ideal setup for a bull run.

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