Crypto Fear and Greed Index Shows Extreme Greed: Could Bitcoin See a Market Correction?

Bitcoin has surpassed $76,000, resulting in “excessive greed” amongst traders, as evidenced by the Crypto Concern & Greed Index. This excessive stage of greed signifies robust optimism, but in addition warns of a potential market correction. The spike comes within the wake of Donald Trump’s presidential victory, which has led to renewed enthusiasm within the crypto market, particularly with the potential for lighter regulation and pro-crypto insurance policies.

Crypto greed is reaching a brand new excessive

On November 7, the Crypto Concern & Greed Index rose to 77, the very best in three months. The index, which tracks investor sentiment from ‘excessive worry’ to ‘excessive greed’, reveals that FOMO (worry of lacking out) stands out as the driving drive behind present buying and selling patterns.

In earlier bull markets, extended excessive scores on the Crypto Concern & Greed Index (above 75) have typically been a warning signal. Such ranges of utmost greed are sometimes adopted by important value drops, as traders have a tendency to carry on to their features, inflicting the market to chill. Such excessive ranges have many questioning: will a correction come?

Trump’s victory fuels optimism in crypto

Furthermore, Bitcoin’s current bounce adopted Donald Trump’s victory within the US presidential election, as traders anticipate lighter regulation and extra crypto-friendly insurance policies. Trump’s pro-crypto stance has fueled hopes of a growth within the sector, with some predicting that his shut ties to Elon Musk may enhance crypto’s profile in his administration.

Can Bitcoin Attain $100,000 Subsequent?

With excessive optimism and political assist within the combine, some imagine Bitcoin may make a run to $100,000. However whereas the outlook is optimistic, the ‘Excessive Greed’ worth indicators warning for these watching the charts: Bitcoin’s subsequent transfer may go both manner.

Over the previous two months, Bitcoin has skilled a robust bullish run, from $53,730 to $74,000 – a outstanding 60% improve. This rally broke by way of key resistance ranges and laid a stable technical basis for additional features. If this development continues, Bitcoin’s value may doubtlessly rise one other 35% and attain the $100,000 mark.