Everyone wants bitcoin (BTC) right now. At least, that is the market sentiment suggested by the Fear and Greed indicator (fear and greed), after the cryptocurrency’s price rise in recent days.
Various sources that refer to this indicator, place it on the side of greed, which is that moment when sentiment turns towards the massive purchase of bitcoin. Fear, on the other hand, indicates greater selling pressure.
The Fear and Greed measures sentiment based on various elements (volatility, dominance in the market, social networks, trends in Google) that can affect the perception of investors or are a sign of interest in an asset. In this case, towards bitcoin.
One of the sources that this indicator measures is Alternative. According to this page, the market is currently at a neutral point, although this Sunday, August 1, it did measure 60 in the index, a number that points to the market’s greed.
For its part, btctools.io has in its registry an «extreme greed» already installed among BTC investors. In fact, this has been the case for several days now, coinciding with the recent rise of the cryptocurrency , which exceeded $ 40,000 for the first time in more than 2 months . In TradingView, you can also see a point of greed today.
While the «fear» in the market is considered as a buying opportunity – instead of a bearish indicator -, greed tends to precede market falls: «When investors are getting too greedy, that means the market needs to make a correction, “says Alternative.
Sell signal or pulse of investor movements?
Although fear is associated with a future rise and greed with a fall, in mid-May CriptoNoticias reported a moment of extreme fear in the market that was followed by a further fall. By then, the cryptocurrency still did not break below 40,000 dollars , although later it even fell below 30,000.
Now, when the cryptocurrency momentarily returned to the 40,000 mark to the upside, investors again seem willing to massively accumulate BTC.
As various analysis firms have been pointing out for weeks, in fact, accumulation interest has been sustained at high levels. Not only among large accumulators, but also among small investors, everyone seeks to accumulate bitcoin in this market phase.
