Bitcoin is still on its way to the moon even on the weekend. The price of the asset hasn’t seen much of a downturn after the massive price hike last month. The general sentiment in the crypto market is still very positive, as the Fear & Greed Index shows. The index, which had spent most of the past two months following the market’s all-time high, has now become the most desirable territory.
The crypto Fear & Greed shows that the market has meanwhile passed into “extreme greed”. Continuation of the upward trend of the last few weeks. The index had gradually moved out of “extreme fear” when the market appeared most vulnerable. Prices plummeted from both Bitcoin to Altcoins. As a result, the mood sank into the negative.
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The first week of August brought a breath of fresh air as the market moved into the fear zone out of extreme fear. While this wasn’t ideal, it did show that cryptocurrencies are making headway again. A week of sustained uptrend brought the price of the digital asset into neutral. What followed was a quick run into the area of ”greed”. Bitcoin had broken through $ 40,000 and there was no telling how long it would take. Investors did not want to miss this and so money flowed back into the market.
Last week, Bitcoin price broke above $ 48,000 for the first time in more than two months after hitting its all-time high of $ 64,000. This sustained growth pushed market sentiment straight to the ultra-positive, with the Fear & Greed Index hitting “extreme greed,” hitting 78 on the scale yesterday and 76 today. This suggests that investors are again investing money in cryptocurrencies.
Crypto market moves in extreme greed | Source: Fear & Greed Index on Alternative.me
The Bitcoin market takes up the clue
With the Fear & Greed Index in “extreme greed”, there is enormous buying pressure on the market. The money has flowed back into the market, causing the prices of cryptocurrencies to skyrocket. Thereafter, the entire crypto market hit $ 2 trillion again after suffering continuous lows for the previous two months. Altcoins have gained a lot as a result, as has Bitcoin.
BTC price trading north of $ 48,000 | Source: BTCUSD on TradingView.com
Bitcoin price, currently trading north of $ 48,000, shows enormous promise to hit a new all-time high. The indicators suggest that this bull rally will continue. The momentum has persisted across the entire market. This means that overall control of price is in the hands of the bulls, even if the price may suffer small dips, who are determined to keep the bullish vehicle going for as long as possible.
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Both institutional and retail investors have shown accumulation patterns in Bitcoin. Exchange inflows have fallen well below exchange outflows, suggesting investors are moving their digital assets off cryptocurrency exchanges for safekeeping in private wallets.
Featured image from Finance Magnates, chart from TradingView.com