Data shows the Bitcoin investor sentiment has entered extreme greed territory following the asset’s surge to a new all-time high (ATH).
Bitcoin Fear & Greed Index Is Now Pointing At ‘Extreme Greed’
You can also find out more about the following: “Fear & Greed Index”The indicator is created by Alternative What does this tell us about the general sentiment of traders within the Bitcoin sector and wider?
The sentiment is represented by a score between 0 and 100. The score is calculated using data from five different factors, including volatility, trading volume dominance of the market, social media sentiment and Google Trends.
When the indicator’s value is greater than 53, it means the investors share a sentiment of greed right now. The metric is below 47, which indicates the current fear of the market. The index that lies between the two areas indicates a neutral mindset.
There are other zones that exist besides these core emotions: fear and extreme greed. The values of the former are higher than 75 while those below 25.
Now, here is what the Bitcoin Fear & Greed Index is like right now:
The indicator, as can be seen above, is currently at a value 77. This indicates that traders are in a state of extreme greed. The market is now in the extreme greed zone, a significant change from yesterday.
Here is a chart that shows how the index’s value has changed over the past year:
The extremes of sentiment have historically been significant in Bitcoin’s price history, with major tops and lows occurring within these areas.
This relationship has been established between the sentiment of the market and its price. inverse The extremes of greed or fear are the two extremes.
From the above graph, it’s apparent that the Fear & Greed Index had surged high into the extreme greed territory when Bitcoin had topped out in the first quarter of this year.
It’s possible that, with the market once again becoming too hyped about the cryptocurrency after the latest all-time high (ATH) breakBTC could see another peak.
However, in general, major tops occur only when the index is at a particularly high level. For example, the top shown above occurred alongside an index value of 88. Thus, it’s possible that sentiment could still have room to heat up, before the rally hits a major obstacle.
BTC price
Bitcoin was trading at $75,900 as of the writing. This is an increase of 8% in the past seven days.
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Source: www.newsbtc.com
