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 You can also find out more about the following: Greed Region
The “Fear & Greed Index”It is a graphical indicator that was created by Alternative It tells you about the general sentiment among Bitcoin traders and other cryptocurrency market participants. To determine sentiment, this index uses data on five variables: trading volume (volume of transactions), volatility (volatility of market capitalization), social media sentiments (social sentiment), and Google Trends. It represents market sentiment as a number between 0 to 100.
If the value of the metric is greater than 53 it indicates that traders are currently feeling greedy. A value below 47 indicates that fear is the dominant emotion in the market. In-between is the territory of a net-neutral mentality.
In addition to these three major sentiment zones, two other special areas are called extreme fear and extreme greed. These two zones are found in people aged 25-75.
Now, here is what the latest value of the Bitcoin Fear & Greed Index has been like:
Above, you can see that the indicator is at 73. That suggests that there are a lot of investors who have an excessive amount of greed. The index was in the fear zone last week. This marks a significant change.
The below chart shows how the value of the Bitcoin Fear & Greed Index has changed over the past year:
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 $68,000The index has reached its highest level since July. The high sentiment levels had led the cryptocurrency to reach a peak. This pattern has been observed throughout history.
Bitcoin tends to go in the same direction opposite The more traders lean to one side, the greater the likelihood of a counter-movement.
This is most likely to occur in the extreme areas, and so it has often been the case that tops or bottoms form when investors share this sentiment. Index value currently lies just above the greedy zone. If investor attitudes continue to improve, a peak could occur for this asset.
In fact, the situation may be so close to being realized that the mood does not need to get any better. The index peaked in July at just 74 points, which is one point less than it currently stands.
BTC price
Bitcoin’s price is currently around $68,000. This represents an increase of over 9% compared to the previous week.
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Source: www.newsbtc.com
