Bitcoin Approaches All-Time High, Yet Extreme Greed Remains Absent: Positive Indicator for Bull Run?

Recent data indicates that the Bitcoin Fear & Greed Index has consistently remained outside the extreme greed range, even following a price climb past $104,000.

Bitcoin Fear & Greed Index Still Reflects Greed Sentiment

The “Fear & Greed Index” is an analytical tool that gauges the prevailing emotions among participants in the Bitcoin and broader cryptocurrency markets.

This index evaluates investor sentiment based on five key factors: trading volume, market volatility, market capitalization dominance, social media sentiment, and Google Trends data.

The sentiment is expressed through a numerical scale from zero to one hundred. Scores below 47 indicate a fearful market sentiment, while scores above 53 suggest a greedy atmosphere. Scores within this range reflect a neutral sentiment among traders.

In addition to these standard sentiments, there are two specific ranges labeled as extreme greed and extreme fear. Extreme greed is identified by values exceeding 75, whereas extreme fear is indicated by values below 26.

Currently, the latest reading of the Bitcoin Fear & Greed Index stands at:

As shown in the image, the current value of the Bitcoin Fear & Greed Index is 70, which implies that overall, investors exhibit a greedy sentiment. This feeling is significantly strong, given that it is only slightly shy of the extreme greed threshold.

Earlier in the month, the investors’ mindset dipped to a neutral state when the price surge paused, but with the recent rally, market sentiment has once again improved.

Interestingly, despite Bitcoin nearing its historic high, investor sentiment has not escalated to extreme greed. Historically, this could favor the price movement of the asset.

This phenomenon arises because the cryptocurrency typically trends contrary to the prevailing market sentiment. As investor certainty about price direction increases, the likelihood of a reversal also grows, indicating that periods of extreme sentiment coincide with major market tops and bottoms.

The Fear & Greed Index’s positioning outside the extreme greed territory may suggest that the current hype among investors is not excessive, allowing Bitcoin potential for further growth before reaching a peak.

BTC Price

Bitcoin briefly surpassed the $105,000 mark, but has since experienced a minor correction, now resting at approximately $103,000.