Bitcoin Nearing ATH, But Still Lacks Extreme Greed: Green Signs for a Price Rise?

Data shows that the Fear and Greed Index of Bitcoin remains outside of the extreme greed zone even after the price surged above 104,000 dollars. The Fear and Greed Index of Bitcoin is still in the Greed territory. The "Fear and Greed Index" is an indicator created by Alternative that tells us about the average sentiment present among investors in the Bitcoin and cryptocurrency market in general. This index uses data from the following five factors to determine the sentiment of traders: trading volume, volatility, market capitalization dominance, social media sentiment, and Google Trends. To reflect market sentiment, the index uses a scale from 0 to 100. All values below 47 indicate the dominance of fear in the market, while values above 53 imply the dominance of greed. Values lying between these thresholds correspond to a neutral sentiment. In addition to these three main emotions, there are two special zones known as extreme greed and extreme fear. The former zone appears at a value above 75, while the latter zone appears at a value below 26. Here is the latest value of the Bitcoin Fear and Greed Index:

As can be seen above, the Fear & Greed Index of Bitcoin currently has a value of 70, indicating that investors in general share a common feeling of greed. This greed sentiment is also quite strong, as it is only a few units away from the extreme greed territory. At the beginning of this month, trader sentiment had fallen to neutral levels as the price rally paused, but with the latest price increase, market sentiment has improved once again.

However, the interesting thing is that although Bitcoin is approaching its all-time high (ATH), investors have not become extremely greedy. If we look at history, this could actually be beneficial for the asset's price. The reason behind this is that cryptocurrencies often tend to move in the opposite direction to the crowd's sentiment. The probability of such a reversal occurring only increases when investors are more certain about a direction, therefore the extreme zones, where sentiment is strongest, are where major peaks and troughs have formed. The Fear and Greed Index still remains outside the extreme greed zone, which may be a sign that excessive speculation has not yet emerged among investors; therefore, Bitcoin still has plenty of room to grow before reaching its peak. BTC price Previously, Bitcoin had surpassed the level of 105,000 dollars, but it seems that this coin has had a slight pullback since then as the price has returned to the level of 103,000 dollars.