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Bitcoin (BTC) has been flirting with the $100,000 mark during the last 48 hours as optimism for the next rally engulfs the market. Because of this, traders have change into very grasping.
Information from the Crypto Concern and Greed Index, which tracks investor sentiment throughout the market, indicates that individuals are in a particularly grasping section. That is evident within the index determine rising above 90 to hit 94 for the primary time in three years.
Traders Turn into Extraordinarily Grasping
The concern and greed index gauges investor sentiment by analyzing a number of components, together with market volatility, social media traits, momentum, and Bitcoin dominance. When the index sits near 0, it’s normally an indication of utmost concern amongst traders, whereas a determine near 50 indicators neutrality available in the market. Because the determine rises to 100, it signifies that traders have gotten grasping, and this typically happens throughout transient or main rallies.
The final time the concern and greed index touched 94 was mid-February 2021. On the time, BTC was on an upward trajectory, hitting an all-time excessive above $47,000. Even throughout bitcoin’s final bull market high in November 2021, the index stopped at 74 earlier than retracing to concern ranges.
Likewise, bitcoin’s rally to a report excessive in March 2024 noticed the index hover round 81, indicating a degree of utmost greed amongst traders. With the cryptocurrency hitting $99,000 for the primary time and hovering lower than 2% away from $100,000, the greed degree amongst traders has skyrocketed.
Notably, the index started to rise two weeks in the past following Donald Trump’s emergence because the winner of america presidential elections and has remained above 70 since November 5.
Altcoin Season Quickly?
Traditionally, BTC experienced main corrections shortly after the concern and greed index indicated excessive greed amongst traders. The market is sure to chill down after getting overheated. Analysts have additionally opined that BTC wants a big correction after this rally so the bull run may lengthen to 2025.
Additionally, altcoin season, which refers to a interval when capital leaves BTC and flows into different cryptocurrencies, has all the time occurred when BTC cools down. As BTC retraces and its dominance reduces, traders normally flip to different property, spiking their demand and, in flip, their costs. Therefore, it’s secure to say that the altcoin season is closer than ever as a result of BTC is sure to expertise a correction quickly.
The submit Bitcoin Fear and Greed Index Hits 3.5-Year High: Does it Hurt BTC’s Chances for $100K? appeared first on CryptoPotato.
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