The data shows that as the cryptocurrency hit an all-time high (ATH), the greed of the cryptocurrency market has soared to a seven-month high.
Extremely greedy crypto fear and greed index
According to the latest weekly report Arcane Research, The Fear and Greed Index has hit a seven-month high as an indicator of extreme greed.
this”Fear and Greed Index“Is an indicator that represents the overall sentiment of the cryptocurrency market on a digital scale from 0 to 100.
When the value of this indicator is below 50, it means that, on average, investors will feel scared. Values below 25 indicate extreme fear. This sentiment usually appears after a sharp adjustment, and periods of extreme fear may prove to be good buying opportunities.
Although the pointer points above 50 means that the crypto market is beginning to become greedy. Extreme greed will appear when the value exceeds 75. Very high values close to 100 may mean that adjustments will occur soon, so investors may not buy more at this time.
This is an instrument that shows the current market sentiment:
The fear and greed index seems to be pointing at extreme greed at the moment | Source: The Arcane Research Weekly Update - Week 42
As shown in the above table, since the value of this indicator is 76, the cryptocurrency market currently looks very greedy.
A comparison with the values of last week and last month is also given below the meter, which are 75 (extremely greedy) and 27 (fear) respectively.
The figure below provides a better understanding of how current Fear and Greed Index values compare to the past:
The values of the indicator over the last one year | Source: The Arcane Research Weekly Update - Week 42
By checking the above chart, it is clear that the Fear and Greed Index reached 84 this week, which is the highest value in the past seven months.
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This peak occurred on the second day after Bitcoin was released New ATH It was about $67,000, but the price corrected soon after. The chart below shows this trend of BTC prices:
BTC's price continues to go down after making a new ATH | Source: BTCUSD on TradingView
The fear and greed index was also hit in response to this decline Bitcoin price, But despite this, the value is still in the category of extreme greed, which means that the crypto market still expects prices to rise.
During the rally earlier this year, the value has remained in the extreme greedy category, and the correction will only cause a temporary drop in the indicator.
This means that if the market must continue to make newer ATHs, market sentiment should remain greedy, otherwise the bull market may start to lose momentum
Featured image from iStock.com, charts from TradingView.com, Arcane Research