Data shows that greed in the cryptocurrency market is on the rise, which is a sign that another correction for Bitcoin may be imminent.
Fear and Greed Scale Says Crypto Market Has Turned Greedy
According to the latest report from Arcane Research, the Fear and Greed Scale has started to indicate greed after displaying fear over the past few weeks.
The Fear and Greed Index is a Bitcoin indicator that displays current market sentiment on a scale that goes from zero to one hundred.
Scale values below fifty mean that the cryptocurrency market is currently afraid of the future. Very low values indicate extreme fear.
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On the other hand, when the counter is above 50, it means that the investors are starting to get greedy, and very high values mean that they are very greedy.
Below is a graph showing 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 chart above shows, the market sentiment around Bitcoin has been spooky for the past three weeks. The metric has now gone up in value and currently appears to be around 59. This indicates that investors are now getting greedy in the cryptocurrency market.
Below is a scale that shows this feeling:
The fear and greed index points at greed | Source: Arcane Research
The scale appears to have indicated extreme greed last month as the index value was around 79, while last week’s values were as low as around 25.
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Generally, when the market shows extreme fear, investors think that it is a good buying opportunity as the price of bitcoin usually goes up after these periods.
However, the upward trend in the price of Bitcoin is accompanied by feelings of greed. When the meter starts to show extreme greed, it could mean that the market is about to correct.
BTC price
At the time of writing, the price of Bitcoin is hovering around $52.6K, up 25% in the past seven days. Over the past month, the coin has accumulated 2.5% in gains.
Below is a chart showing the trend in the cryptocurrency price over the past five days:
BTC's price continues the upwards momentum | Source: BTCUSD on TradingView
Bitcoin has continued its huge uptrend over the past several days as the coin is now close to testing the $53,000 level. But with the fear and greed indicator starting to signal greedy market sentiment, a BTC correction may be due soon. Although there are other factors that can also influence the price, so it remains to be seen where the trend will go next.