June 23, 2023 at 16:43 GMTModified date: August 9, 2023 at 09:56 GMT
June 23, 2023 at 16:43 GMT

Fear and Greed index hints at correction

Matrixport’s Greed and Fear index surpassed 90% today following Bitcoin’s rally, as experts predict that there will be a market correction soon

Bitcoin (BTC). Pic: Unsplash

Matrixport’s Greed and Fear index surpassed 90% today following Bitcoin’s rally.  

The indicator measures overall investor sentiment towards Bitcoin and other cryptos. It takes into account factors such as market volatility, trading volume, social media trends, etc  to determine whether the market is experiencing fear or greed. A value from 50 to 100 indicates greed while 0 to 49 indicates fear.

Despite the growing euphoria, experts predict that there will be a market correction soon, in line with historical patterns of the market’s reaction when the index exceeds 90%. 

Matrixport head of research and strategy Markus Thielen believes that history will repeat itself again. He told CoinDesk via email: “Our Bitcoin Greed & Fear Index has reached exuberant levels in record time. It could be well advised to lock in some gains for short-term traders.” 

Thielen further suggested that there may be potential for price increase after some consolidation due to the upward trend of the 21-day moving average . 

Source: Matrixport

Crypto market update 

Bitcoin is now defying historical trends and appears poised to surpass the $31k mark. In less than two hours, it has surged by 2.68%. As of the time of writing, BTC is trading at $30,904.15.

The recent surge in price is a direct result of Wall Street’s active efforts to bring a spot Bitcoin ETF to market. Cameron Winklevoss, co-founder of Gemini, suggests that this development has opened a window of opportunity, which he refers to as ‘The Great Accumulation’. Winklevoss believes that during this period, the potential to accumulate Bitcoin will be significant but limited, as it is expected to diminish once ETFs are officially launched.

Elsewhere on the charts, altcoins are holding their ground nicely despite Bitcoin’s increased dominance which reached a two-year of 51% high on Wednesday. Ether has surged past $1900 while BNB, Cardano, Solana and other major altcoins are also in gains.

Bitcoin forks – Bitcoin Cash (BCH) and Bitcoin SV (BSV) are the highest gainers of the top 100. Their performance reflects the increased investor interest in bitcoin derivatives lately.

BCH is 31% up in the last 24 hours and trades at $176 – its highest in four months. Its open interest has also soared to 77%. The resurgence is also attributed to its listing by wall street-backed EDX exchange.

BTC daily chart. Source: CoinMarketCap

BSV is currently trading at $33.2 – a 21% increase in the last 24 hours.

Source: CoinMarketCap