The data shows that greed is growing in the crypto market, a sign that another bitcoin correction is coming soon.
The fear and greed meter says the crypto market has become greedy
According to the latest report from Arken Research, the fear and greed meter has started pointing to greed after showing fear over the past few weeks.
The “Fear and Greed Index” is a bitcoin indicator that shows the current market sentiment on a meter that goes from zero to a hundred.
A metric value below fifty means that the crypto market is currently fearful for the future. Too low a price implies extreme fear.
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On the other hand, when the meter points above 50, it means investors have started to be greedy, and very high values mean they are extremely greedy.
Here is how the value of Bitcoin’s fear and greed index has changed compared to last year
Current value of the indicator seems to be 59 | Source: Arcane Research
As the graph above shows, the market sentiment surrounding Bitcoin has been alarming for the past three weeks. The price of the metric has now increased and now it seems to be around 59. This shows that investors have now become greedy in the crypto market.
Below is a meter that displays this feeling:
The fear and greed index points at greed | Source: Arcane Research
Looks like last month, the meter pointed to extreme greed as the price of the index was around 79, while last week the values were around 25.
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Usually, when the market shows extreme fear, investors consider it a good buying opportunity because the price of BTC is usually valued after such a period.
As the price of Bitcoin rises, so does the greedy attitude. When the meter starts pointing towards extreme greed, it could mean that the market is in for a correction.
At the time of writing, the price of Bitcoin is around $ 52.6k, up 25% in the last seven days. Last month, the currency gained 2.5%.
Here is a chart showing the price trend of crypto in the last four days:
BTC's price continues the upwards momentum | Source: BTCUSD on TradingView
Bitcoin has continued to make a great improvement over the past few days as the currency has now reached a test of the 53k level. But as fear and greed indicators begin to point to the sentiment of the greedy market, BTC may soon make a correction. While other factors can also affect the price, there is a tendency to see where the next trend will go.