Bitcoin (BTC) In Extreme Greed Territory Again After Fews Months

Investors' sentiment around Bitcoin has witnessed a sharp increase as BTC's Fear and Greed index has moved into extreme greed levels

Bitcoin Fear and Greed Index Shows Extreme Greed, BTC Price Drops Below $73K

The traders and investors are still betting on Bitcoin despite facing strong resistance at the $73,000 price level, which led to a lower price on Thursday after a week of remarkable upside movement in the crypto asset.

Bitcoin Fear and Greed Index Now in Extreme Greed Levels Again After Fews Months

Investors are showing increasing optimism around Bitcoin as BTC’s Fear and Greed index has moved into extreme greed levels, signaling a positive outlook for the crypto asset. Macro trader and investor, Jason Pizzino, reported the development in a recent post on X, which may suggest an overvaluation of the asset.

According to the macro expert, for 2 days in a row now, Bitcoin has been in the extreme greed zone, marking its first time since June this year. He further went on to state that this market sentiment might be persistent throughout the next few months, based on past market trends.

To note, the Fear and Greed index is an instrument for examining BTC’s superiority over other digital assets by assessing variables like volatility, momentum, and social media trends. It has been a key factor in offering investors an outlook on when to sell and buy BTC.

As observed in the past, the last time Bitcoin experienced prolonged periods of extreme greed was around the peak in February and April, which might be signaling renewed confidence and optimism in BTC. Even though there was still a lot of price activity during this period, Pizzino claims this development is a “top signal.”

This increase in market sentiment reflects a constant rise in confidence among retail and institutional investors, triggering an upward direction for the price of Bitcoin. While this shift in enthusiasm often implies that investors are anticipating more gains, there is a risk of overbought conditions.

In the meantime, the expert has urged investors to be wary of those promoting the large inflows of the historical Spot Bitcoin Exchange-Traded Funds (ETFs) presently or Michael Saylor’s current comments about BTC, claiming everything was the same 8 to 10 months ago.

BTC Price Drops to $69K Amidst Bearish Signs, Still in Extreme Greed Territory

In a bearish sign, the crypto asset has fallen to the $69,000 threshold amid signs of an extended drop, which comes as traders and investors are still betting on Bitcoin in the short term. Given that this drop comes after a week of remarkable upside movement, it has sparked speculations about its short-term potential.

However, with the surge in trading volume in the past 24 hours by over 21%, there is the possibility of a brief price rebound as the bulls seem to be gradually regaining control of the market.

The decline has also led to a dip in Bitcoin’s dominance in the market, which has fallen to 58%, previously situated close to 60%. This slight decrease in market dominance during waning performances in BTC raises the potential of diversification towards altcoins.