Bitcoin Sets Record $93,000 High As Extreme Greed Level Hits 84
14 Novembre 2024 - 10:30AM
NEWSBTC
Data shows the Bitcoin market sentiment has recently seen a
significant uplift as the cryptocurrency’s price has set new
records. Bitcoin Has Just Set A New All-Time High Above $93,000
Bitcoin had seen a bit of a pause in its bull run yesterday, but
the uptrend has already returned for its price in spectacular
fashion today as the coin has now achieved a new all-time high
(ATH) beyond the $93,000 mark. Related Reading: XRP NVT Ratio Has
Been High Recently: What It Means The chart below shows how the
coin’s recent trajectory has looked. Following this rally, Bitcoin
is sitting in weekly gains of over 24%. As is generally the case,
the other assets in the sector have also followed BTC in this run,
with Ethereum (ETH), the largest of the lot, garnering similar
profits. However, many altcoins have outperformed these two giants,
with Dogecoin (DOGE) particularly standing out with its impressive
120% positive returns. Whenever the market goes through such a
bullish phase, investor sentiment shifts towards the better. The
same has also happened this time, as the Fear & Greed Index
shows. Bitcoin Fear & Greed Index Is Now At A Value Of 84 The
“Fear & Greed Index” refers to an indicator created by
Alternative that tells us about the average sentiment among the
investors in Bitcoin and the wider cryptocurrency markets. This
metric uses a numeric scale from zero to a hundred to represent the
trader mentality. Values above the 53 mark imply the average
investor is showing greed, while those under 47 suggest the
presence of fear in the market. The region between these two
cutoffs corresponds to a net neutral sentiment. Other than these
three main sentiments, there are also two special ones: extreme
greed and fear. The former occurs at values above 75, while the
latter is under 25. Now, here is what the Bitcoin Fear & Greed
Index is like right now: As is visible above, the index is sitting
at a value of 84. This naturally indicates that investor sentiment
is firmly in extreme greed. Historically, Bitcoin and other coins
in the sector have tended to move opposite to the majority’s
expectations. The probability of a contrary move also grows the
crowd’s confidence. As such, whenever the Fear & Greed Index
has gone too far off into one extreme, a reversal has become likely
for BTC. This effect was also witnessed during the top back in
March of this year. During that top, the indicator was sitting at
88, which isn’t much higher than the latest value. Thus, it’s
possible that, at least from the perspective of sentiment, Bitcoin
may be starting to become overheated. Related Reading: Dogecoin
Explodes 150% As Shark & Whale Buying Returns That said, past
bull markets have generally seen the cryptocurrency sustain in this
extreme zone for a while before the actual cyclical top is reached,
so the rally could still have room to run. Featured image from
Dall-E, Alternative.me, chart from TradingView.com
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