Data shows greed is growing in the crypto market, a signal that another bitcoin correction may be coming soon.
Fear And Greed Meter says the crypto market has gotten greedy
According to the latest report from Arcane Research, the fear and greed indicator points to greed after displaying fear over the past few weeks.
The “fear and greed index” is a bitcoin indicator that shows the current market sentiment on a counter that ranges from zero to one hundred.
Values of the metric below fifty mean that the crypto market is currently afraid of the future. Very low values imply extreme fear.
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Conversely, if the counter shows over 50, it means investors have become greedy, and very high values mean they are extremely greedy.
Here is a graph that shows how the value of the Bitcoin Fear and Greed Index has changed over the past year
Current value of the indicator seems to be 59 | Source: Arcane Research
As the graph above shows, the market sentiment around Bitcoin for the past three weeks has been that of fear. The metric has now skyrocketed and now appears to be around 59. This shows that investors have now become greedy in the crypto market.
Below is a meter that shows this mood:
The fear and greed index points at greed | Source: Arcane Research
It looks like the meter indicated extreme greed last month as the value of the indicator was around 79 while the values were low at around 25 last week.
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When the market shows extreme fear, investors generally consider this a good buying opportunity as the BTC price usually appreciates after such periods.
However, an upward trend in Bitcoin price is accompanied by greedy sentiment. If the counter is indicating extreme greed, it may mean the market is due for a correction.
At the time of writing, Bitcoin’s price is hovering around 52.6k, up 25% over the past seven days. In the past month the coin has accumulated 2.5% in profits.
Here is a graph that shows the trend in the price of crypto over the past five days:
BTC's price continues the upwards momentum | Source: BTCUSD on TradingView
Bitcoin has continued a big uptrend in the past few days as the coin now approaches a test of the $ 53,000 level. But with the fear and greed index pointing to greedy market sentiment, a correction might soon be due in BTC. While other factors can affect price, it remains to be seen where the trend will go next.