As Bitcoin made a brand new all-time excessive above $68k, the crypto market sentiment modified to excessive greed. Periods of such sentiment have result in corrections up to now, however will the pattern be comparable this time?
Bitcoin Fear And Greed Index Starts Pointing At Extreme Greed
As per the newest weekly report from Arcane Research, the worry and greed index is now pointing at excessive greed as BTC makes a brand new ATH.
The worry and greed index is a Bitcoin indicator that exhibits what the present crypto market sentiment is. The metric makes use of a numeric scale that ranges from zero to hundred to show the sentiment.
Values beneath fifty sign that the market is at present sharing worry, whereas values above it indicate traders have gotten grasping.
If the indicator’s worth goes above 75 or beneath 25, then it means the market is exhibiting excessive greed or excessive worry, respectively.
Periods with excessive values recommend the market may witness a reversal quickly. A correction could comply with excessive greed values, and a change to uptrend could comply with from an especially fearful market.
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Here is the place the present Bitcoin worry and greed index needle factors at:
Looks just like the crypto market is critically grasping for the time being | Source: The Arcane Research Weekly Update - Week 44
As the above meter exhibits, the present market sentiment is that of maximum greed. This is a rise from final week because the values have been within the regular greed territory then. This change is brought on by BTC reaching a brand new ATH.
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The market was additionally grasping final month. The beneath chart exhibits the pattern within the worth of the indicator over the previous 12 months.
Crypto market sentiment has been within the greed territory for some time now | Source: The Arcane Research Weekly Update Week 44
The market has now seen one month straight of maximum greed or greed sentiment. The final time this occurred was from August to September, and the streak then ended with the El Salvador day crash.
This interval of greed may undergo an analogous destiny. However, the report notes that in Spring the indicator’s worth remained constantly excessive for a protracted interval. So it’s potential an analogous pattern could possibly be seen within the coming weeks as an alternative.
At the time of writing, Bitcoin’s value floats round $66.5k, up 4% within the final seven days. Over the previous month, the crypto has gained 20% in worth.
Here is a chart that exhibits the pattern within the worth of the coin during the last 5 days:
BTC's value made a brand new ATH at present, however has since come down a bit | Source: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradingView.com, Arcane Research