Bitcoin Breaks $104,000: Bullish Sign or Extreme Greed Lurking?

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The data indicates that the Bitcoin Fear & Greed Index has yet to reach an extremely high or low level. This might suggest possible implications for Bitcoin’s price rebound.

Bitcoin Fear & Greed Index Is Sitting At 75 Right Now

The “Fear & Greed Index” is a term for a tool developed by Alternative, which provides insights into the general mood or sentiment of Bitcoin and broader cryptocurrency market investors as a whole.

This index determines its prediction using these five elements: volatility, trading activity, public opinion on social media, market capitalization influence, and Google search trends. The resulting value is a score that falls between 0 and 100, reflecting the calculated sentiment.

If the metric is less than 47, it generally indicates that investors collectively feel fearful. Conversely, when the metric exceeds 53, it usually suggests there’s a prevailing sense of greed in the market. Values falling within these bounds typically reflect a neutral mindset among investors as a whole.

Now, here is how the latest value of the Bitcoin Fear & Greed Index looks:

From what you see, the traders in this field are displaying a sense of excessive optimism since the index stands at 75. This overly optimistic attitude is actually quite intense, reaching almost to a critical point called “extreme greed” zone.

In simpler terms, excessive greed sets in when the measure exceeds 75, while an area of intense fear is also defined, which is triggered when the measurement drops below 25.

Today’s value shows a significant enhancement when compared to several days prior, but it remains identical to that of yesterday. It’s intriguing to note that the cryptocurrency has persisted in its upward trajectory during the last 24 hours.

The below chart shows a record of the values of the Bitcoin Fear & Greed Index over the past year.

Historically, Bitcoin often moves in a manner that defies the predictions of the majority. As confidence in a particular direction grows within the crowd, the likelihood of an opposite movement increases. Consequently, peak and trough points in this asset are typically reached when the market sentiment is at its most extreme.

Today, Bitcoin continues its upward trend, with expectations that its value might rise even more tomorrow according to certain indicators. Interestingly, despite moving closer to its record high, the coin remains outside the “extreme greed” zone on the Crypto Fear & Greed Index, which could be a promising sign for its durability in the long run.

Last month’s peak price aligned with the Fear & Greed Index reading 87, and the same happened in March with a score of 88. It’s plausible that future peaks could occur below these thresholds, but they serve as indicators signaling when investor sentiment begins to significantly heat up.

BTC Price

At the time of writing, Bitcoin is trading around $104,800, up more than 11% over the past week.

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2025-01-18 13:11