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Data shows the Bitcoin market sentiment has recently seen a significant uplift as the cryptocurrency’s price has set new records.
Asus 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.
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.
Asus 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.
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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Keshav Verma
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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