Data shows that bitcoin market sentiment has almost turned into extreme greed as the price of the cryptocurrency has risen to the $68,000 mark.
bitcoin Fear and Greed Index Is Currently Within the Greed Region
The “Fear and Greed Index” is an indicator created by crypto/fear-and-greed-index/” target=”_blank”>Alternative That tells us about the average sentiment present among traders in bitcoin and the broader cryptocurrency markets. This index uses data from the following five factors to determine sentiment: trading volume, volatility, social media sentiment, market cap dominance, and Google Trends. Once found, it represents the market mindset as a score between 0 and 100.
When the metric has a value above 53, it means that traders as a whole share a feeling of greed at the moment. On the other hand, being below the 47 mark implies the dominance of fear in the market. The territory between these two corresponds to a clearly neutral mentality.
In addition to these three main feeling zones, there are also two special regions called extreme fear and extreme greed. The first of them occurs at age 25 or less, while the second occurs at age 75 or more.
Now, this is what the latest bitcoin Fear & Greed Index value has been like:
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As can be seen above, the indicator has a value of 73, suggesting that investors are currently displaying a significant amount of greed. This is a notable change from the mood in the market last week, as the index had fallen into the fear zone at that time.
The following chart shows how the value of the bitcoin Fear & Greed Index has changed over the past year:
<img class="wp-image-648321 size-large" src="https://technicalterrence.com/wp-content/uploads/2024/10/1729120656_421_Extreme-Bitcoin-Greed-Is-Almost-Here-Will-This-Take-Us.png" alt="bitcoin Fear and Greed Index” srcset=”https://www.newsbtc.com/wp-content/uploads/2024/10/chart_2b14cb.png?w=1116 1116w, https://www.newsbtc.com/wp-content/uploads/2024/10/chart_2b14cb.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/10/chart_2b14cb.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/10/chart_2b14cb.png?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/10/chart_2b14cb.png?w=750 750w” />
You can see from the chart that this latest surge in sentiment, which came as a result of the asset's rally to $68,000, has taken the index to its highest value since late July. Back then, high sentiment values had led to a high for the cryptocurrency. This type of pattern is something that has actually been witnessed throughout history.
It turns out that bitcoin has a tendency to move in the opposite direction to what the crowd expects and the probability of a contrary move increases the more traders lean to one side.
In extreme regions, this probability is stronger, which is why highs and lows have often formed when investors have shared these sentiments. The current value of the index is just outside the extreme greed zone, so the asset could be likely to top out if investor mindset continues to improve.
Sentiment may not even have to improve further for such a scenario to occur, as the July peak occurred when the index was at 74, just one unit higher than today.
btc Price
At the time of writing, bitcoin is trading at around $68,000, up more than 9% over the past week.
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