According to Alternative.me data, the current sentiment of the crypto market is demonstrating "extreme greed - or extreme greed," according to the Crypto Fear & Greed Index.
The index has reached 91 points, which is the highest level since June 26, 6. While about a month ago it showed the "fear", at around 2019 points.
The fact that the index rose to such highs was due to the push of the bitcoin price to cross $ 18,000.
"Extreme greed" emerged when bitcoin was predicted by many experts and analysts that it will retest the highs of $ 20,000 by the end of the year.
Although, for now, Bitcoin price has declined slightly from the high of nearly 18,400 USD reached on 18/11 but the currency is still well maintained above 17,000 USD.
Once investor sentiment in the market turns to "extreme greed", it means that the market is about to have a downward correction, according to Alternative.me:
"The Crypto Fear & Greed Index is considered on a scale from 0 to 100. In which, levels near 0 represent" extreme fear ", or below 50 represent" fear ", and if levels near 90 or more means that market sentiment is "extremely greedy". And according to previously recorded developments, every time this index turns "extremely greedy", it often comes with downward corrections.
Alternative.me looks at 5 factors to calculate the index: Volatility (share: 25%), Market dynamics / Volume (25%), Social Media (15%), Survey (15%) ), Dominance (10%) and Trend (10%).
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