What to Expect for BTC Price as Bitcoin Eyes Extreme Greed Territory Amid Rough Market ⋆ ZyCrypto
Bitcoin has generally maintained an upward movement this quarter and remains promising for key players. However, there is still room for pushback in the short term. This is according to recent data shared by Glassnode.
Glassnode, the leading blockchain data platform, took to Twitter to reveal where the Bitcoin market could be headed in the coming weeks. According to the Bitcoin Fear and Greed Index, Bitcoin is already in greed territory.
“We recently added the Bitcoin Fear and Greed Index, which is now well within Greed territory.” wrote Glassnode.
The Bitcoin Fear and Greed Index has a scale of 0 to 100. The scale was designed to categorize Bitcoin sentiment among market participants, from extreme fear to greed. Among traders, the index is used as a pointer to help traders find a perfect entry or exit point.
The index relies on metrics such as Bitcoin’s trading volume, collective sentiment shared across social media and social media search patterns, current volatility levels and Bitcoin’s fluctuations in response to determine the market’s position on the asset.
When the scale shows 0, it signals extreme fear in the market. For traders, this can be a great entry point to buy low. On the other hand, the scale moving towards the extreme greed area means that the sentiments among Bitcoin traders are mostly positive. This usually happens after Bitcoin’s bulls have built momentum over some time.
With Glassnode reporting that Bitcoin is currently in greed territory, the market may imitate other patterns from the past.
“Will this rally push BTC into extreme greed like in 2019 and 2021? Or be overwhelmed by resistance like March 2020 or the 2022 drawdown?” Glassnode asked.
As Glassnode noted, back in 2019 and 2021, the Bitcoin market index signaled extreme market greed after a long-term price rally.
But in 2020, the market registered significant resistance in the first quarter. The market may also imitate the patterns seen in 2022, especially with deleveraging, as crypto firms reduce their financial leverage by raising capital.
At the time of this report, Bitcoin is up 0.27% in the last hour, although its 24-hour gain is up over 2%. The top cryptocurrency hit a high of $28,433 on April 4 before returning to the press time price of $27,927.
According to previous reports, key figures in the crypto market believe that Bitcoin is timed to tap $30,000 and go even higher in the long term.
