Friday, December 8, 2023


Crypto services provider Matrixport’s proprietary Bitcoin Greed and Fear Index, which has a solid track record of marking trend reversals, is signaling a bull revival in bitcoin (BTC)

The Greed and Fear Index measures investor sentiment, with above 90% readings signaling greed or excess optimism and below 10% figures representing extreme fear or pessimism. Such indicators are widely tracked because excess optimism or greed is often seen at market tops while fear is seen at market bottoms.

Latest data show Matrixport’s index has recently turned higher from 30% to 60%, bottoming out of July’s slide from above 90%.

“Index appears to have bottomed out as the daily signal (grey) is projecting upside pressure. After four weeks of consolidation, this indicator is tactically bullish and Bitcoin prices could resume the uptrend,” Markus Thielen, head of research and strategy at Matrixport, said in a note to clients on Thursday.

Matrixport's Bitcoin Greed & Fear Index
Matrixport’s Bitcoin Greed & Fear Index (Matrixport)

Notice how tops and bottoms in the index and the index’s 21-day simple moving average (SMA) have historically coincided with bullish and bearish reversals in bitcoin’s price. The 21-day SMA now shows signs of bottoming out, supporting the case for a renewed upside volatility in bitcoin.

Bitcoin has been listless for sometime now, trading between $28,000 and $30,000 for over two weeks, amid volatility in traditional markets and expectations for Fed rate cuts early next year.

Per some analysts, the SEC’s impending decision on spot exchange-traded fund (ETF) filings is a crucial catalyst for price volatility.

The regulator is facing a deadline on Aug. 13 to approve or reject Ark Invest’s spot Bitcoin ETF application. However, Aug. 13 is a Sunday, so some analysts expect the SEC to announce its decision later Friday.

Edited by Parikshit Mishra.



Source
#Matrixports #Bitcoin #Greed #Fear #Index #Upswing #Ahead

Banner Content
Tags: , , , , , , , , , , , , , , , , , , , , , , , , ,

Related Article

0 Comments

Leave a Reply

%d