Data shows that Bitcoin investors have again assumed a sentiment of greed after BTC’s surge of $64,000. Here’s what this might mean.

Bitcoin Fear & Greed Index Is Now Pointing At ‘Greed’

The “Fear & Greed Index” is an indicator created by Alternative that tells us in regards to the sentiment currently present among the many investors of Bitcoin and other large cryptocurrencies.

The metric uses data from five aspects to find out the web market mentality: volatility, trading volume, social media sentiment, market cap dominance, and Google Trends.

The index uses a scale from zero to 100 to represent this sentiment. All values above the 53 mark correspond to the presence of greed among the many investors, while those below 47 imply fear out there. Naturally, values between these two cutoffs suggest a net-neutral mentality.

Now, here’s what the Bitcoin Fear & Greed Index is looking like immediately:

The worth of the metric appears to be 55 in the mean time | Source: Alternative

As is visible above, the indicator has a worth of 55, meaning that the investors are only sharing a sentiment of greed immediately. This greedy mentality is a recent change for the market in comparison with the recent trend.

The chart below shows how the worth of the index has modified over the past yr.

Looks just like the value of the indicator has shot up in recent days | Source: Alternative

The graph shows that the Bitcoin Fear & Greed Index had relatively low values just last week. More particularly, the indicator had been deep contained in the fear region and quite near a special zone called the extreme fear.

Extreme fear occurs when the index registers a worth of 25 or lower. The metric has made several visits into this territory in the course of the past month, with perhaps probably the most notable instance being the low that occurred alongside the worth bottom on August fifth.

Historically, Bitcoin has seen many cases of such a pattern, where dips into the intense fear region have led toward some bottom for the cryptocurrency’s price.

An analogous but opposite pattern has also been witnessed for the extreme greed zone, which starts from 75 on the Fear & Greed Index. The value all-time high (ATH) earlier within the yr also formed when the sentiment spiked into this territory.

Thus, it could appear that Bitcoin tends to maneuver within the direction opposite to what the masses predict. The intense sentiments represent the periods where this expectation is the strongest, so it is sensible that a reversal would even be the almost certainly to occur during them.

With the sentiment improving from fear to greed recently, investors have began becoming bullish again. Because the hype is simply mild for now, Bitcoin shouldn’t feel a negative effect.

The index will be watched in the approaching days, though, as any spikes towards extreme greed could function a warning that things are getting too hot for the asset.

BTC Price

Bitcoin had gone as high as $65,000 yesterday, however the asset appears to have seen a pullback to $63,600 since then.

The value of the coin appears to have gone stale after its recent rally | Source: BTCUSD on TradingView

Featured image from Dall-E, Alternative.net, chart from TradingView.com