Greed Spikes To Seven-Month High Alongside Record Crypto Prices
27 Ottobre 2021 - 9:00PM
NEWSBTC
Data shows greed in the crypto market has spiked to seven-month
highs as coins record new all-time highs (ATHs). Crypto Fear And
Greed Index Points At Extreme Greed As per the latest weekly report
from Arcane Research, the fear and greed index has recorded
seven-month highs as the needle points at extreme greed. The “fear
and greed index” is an indicator that represents the general
sentiment of the crypto market on a numeric scale that goes from 0
to 100. When the metric has values below 50, it means there is, on
average, fear among investors. Values lower than 25 denote extreme
fear. Such a sentiment is usually seen after big corrections, and
periods of extreme fear may prove to be good buying opportunities.
While the needle pointing above 50 means the crypto market is
starting to get greedy. Extreme greed occurs when values exceed 75.
Very high values near 100 may mean there will be a correction soon
so investors may not buy more at this point. Here is a meter that
shows what the current market sentiment is: The fear and greed
index seems to be pointing at extreme greed at the moment | Source:
The Arcane Research Weekly Update - Week 42 As the above meter
shows, the crypto market looks to be extremely greedy right now as
the value of the indicator stands at 76. Related Reading
| Bitcoin Funding Rates Touch Same Level As Early September,
More Correction To Come? Comparison with last week’s and last
month’s values is also given below the meter, which were 75
(extreme greed) and 27 (fear), respectively. The below chart gives
a better idea about how the current fear and greed index values
compare with those of the past: The values of the indicator over
the last one year | Source: The Arcane Research Weekly Update -
Week 42 On examining the above graph, it becomes apparent that the
fear and greed index reached values of 84 this week, the highest in
the last seven months. Related Reading | Breaking Down The
Bitcoin Binance Flash Crash By The Second This peak was made just a
day after Bitcoin made its new ATH of around $67k, but shortly
following that the price had a correction. The below chart shows
this trend in BTC’s price: BTC's price continues to go down after
making a new ATH | Source: BTCUSD on TradingView The fear and greed
index also took a hit in response to this decline in Bitcoin’s
price, but nonetheless, values still remain in the extreme greed
category, which means the crypto market still expects prices to go
higher. During the rally earlier in the year, values consistently
remained in the extreme greed category, and corrections only caused
temporary declines in the indicator. This means that if the market
has to continue making newer ATHs, the market sentiment should
remain greedy, otherwise the bull run might start losing steam
Featured image from iStock.com, charts from TradingView.com, Arcane
Research
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