Does Surging Crypto Market Greed Point To Another Bitcoin Correction?

Keshav Verma

1 year ago

3 mins read

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Data shows greed in the crypto market is on the rise, a signal that another Bitcoin correction could be coming soon.

Fear And Greed Meter Says Crypto Market Has Turned Greedy

As per the latest report from Arcane Research, the fear and greed meter has started pointing towards greed after showing fear for the past few weeks.

The “fear and greed index” is a Bitcoin indicator that displays the current market sentiment on a meter that goes from zero to hundred.

Values of the metric below fifty mean that the crypto market is currently fearful of the future. Very low values imply extreme fear.

On the other hand, when the meter points above 50, it means investors have started to become greedy, and very high values mean they are extremely greedy.

Here is a chart showing how the value of the Bitcoin fear and greed index has changed over the last year

Current value of the indicator seems to be 59 | Source: Arcane Research

As the above graph shows, the market sentiment around Bitcoin was that of fear over the last three weeks. The metric’s value has shot up now and currently looks to be at about 59. This shows investors have now turned greedy in the crypto market.

Below is a meter that displays this sentiment:

The fear and greed index points at greed | Source: Arcane Research

Looks like last month, the meter pointed at extreme greed as the indicator’s value was around 79, while last week the values were low at around 25.

Generally, when the market shows extreme fear, investors think of it as a good buying opportunity as BTC price usually appreciates following such periods.

An uptrend in the Bitcoin price, however, is accompanied by greedy sentiment. When the meter starts pointing at extreme greed, it may mean that the market is due for a correction.

BTC Price

At the time of writing, Bitcoin’s price floats around $52.6k, up 25% in the last seven days. Over the last month, the coin has accumulated 2.5% in gains.

Here is a chart showing the trend in the price of the crypto over the last five days:

BTC's price continues the upwards momentum | Source: BTCUSD on TradingView

Bitcoin has continued a great uptrend the past several days as the coin now approaches a test of the $53k level. But with the fear and greed index starting to point at greedy market sentiment, BTC could be due for a correction soon. Though other factors can also affect the price so it remains to be seen where the trend will go next.

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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