Crypto Markets Turning Greedy-Is it an Indication of the Start of a Bull Run?
The altcoins in the crypto space have flipped slightly as the bears are slowly gaining their dominance back. The Bitcoin price after trading close to $24,000 has dropped significantly in the past few hours and plunged below $23,000. However, the other major altcoins like Ethereum, Cardano, XRP, etc have been displaying enough strength as they continue to sustain above their gained levels.
The market sentiments are changing gradually, as the FUD appears to have flushed out largely. Meanwhile, the fresh spike has raised the speculation of Bitcoin price soaring beyond $25,000 due to which the markets now appear to have become greedy. With the rise in the Fear and Greed indicator, the markets are believed to remain bullish for some time ahead.
The Fear and Greed Index is a tool that helps investors to understand the sentiment of the market. It indicates to what extent the markets can be fearful and greedy. Presently, the index points towards 51 which is within the range of being greedy. The levels have now marked a 14-month high after being within an extreme fear for over 9 months. The last time, the index pointed to greedy levels was just before the beginning of the bear market in November 2021.
Today, the Fear and Greed Index marked a high around 65, despite the fresh BTC price reversal. Therefore, it can be assumed that the market participants are still bullish on Bitcoin. Hence a notable upswing may prevail that may rise the price significantly toward the interim target of $25,000.
However, Bitcoin’s (BTC) price is priced at $38,000 lower than November 2021 levels and 65% below the current ATH. Therefore, the greed levels may rise in the coming days which could spark a notable rally ahead.