Despite facing strong resistance at the price level of $73,000, which led to a significant price drop on Thursday after an amazing week of opposite movements, traders and investors are still betting on Bitcoin, which shows persistence. to seek with crypto assets.
Bitcoin In An Extreme Greed Zone And After A Few Months
Investor sentiment around Bitcoin has seen a sharp increase as the BTC Fear and Greed index has moved into extreme greed levels, indicating an optimistic view of the crypto asset. Jason Pizzino, great trader and investor, report recent post development in X, which may suggest overvaluation of the asset.
A macro expert revealed that 2 days in a row, Bitcoin it was in extreme selfish territory, marking the first time since June of this year. He also warned that this market sentiment may continue over the next few months as seen in previous markets.
Specifically, the Fear and Greed Index is a tool to evaluate the superiority of BTC over other digital assets by evaluating variables such as volatility, momentum, and social media trends. It has been a reliable indicator that gives investors information on when to sell again buy BTC.
According to Pizzino, near the peak in February and April was the last time Bitcoin experienced prolonged periods of extreme greed, suggesting renewed confidence and optimism in BTC. While there was still a lot of pricing activity at this point, Pizzino says the improvement is “a bullish signal.”
This increase in market sentiment reflects the ever-increasing confidence among retailers and institutional investorswhich causes an upward trend in the price of Bitcoin. While this volatility in enthusiasm often means that investors are expecting more returns, there is a risk of overbought conditions.
Meanwhile, the expert has urged investors to be wary of those promoting the biggest entry in history Spot Bitcoin Exchange-Traded Funds (ETFs) currently or Michael Saylor’s current opinions about BTC, saying that everything was the same 8 to 10 months ago.
BTC In Bearish Zone Amid Extreme Greed
Despite the strong optimism surrounding it BTCthe crypto asset fell to the $69,000 threshold, showing signs of an extended decline. Given that this drop comes after a week of uptrends, it has sparked speculation about its short-term strength.
However, with an increase in trading volume in the last 24 hours of more than 21%, there is a possibility of a short price increase as the bulls seem to regain control of the market.
The decline also led to submergence Bitcoin dominance in the market, which has fallen to 58%, which was previously close to 60%. This slow decline in market dominance during a period of declining activity in BTC raises the potential for diversification in altcoins.
Featured image from Unsplash, chart from Tradingview.com
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