Bitcoin is still headed for the moon even as the weekend goes on. The price of the asset has not seen much in the way of a downturn following its massive price increase from last month. Overall sentiments in the crypto market are still very positive, as evidenced in the Fear & Greed Index. The index which had spent the better part of the last two months following the market all-time high has now turned into the most coveted territory.
The crypto Fear & Greed shows that the market has now gone into “extreme greed.” Continuing its upward trajectory from the last couple of weeks. The index had gradually made its way out of “extreme fear,” when the market seemed to be in its most vulnerable. Prices were crashing from both bitcoin to altcoins. This saw sentiments decline into negative.
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The first week of August brought a gush of fresh air when the market moved out of extreme fear into the fear territory. Although this was not ideal, it showed that cryptocurrencies were once again making progress. A week of continuous uptrend brought the price of the digital asset into neutral. Then what followed was a quick run-up into the “greed” territory. Bitcoin had broken $40K and there was no telling how long the run-up would go on. Investors did not want to miss out on this and so money poured back into the market.
Last week saw the price of bitcoin breaking $48K for the first time in over two months after it hit its $64K all-time high. This continued growth pushed the market sentiment right into ultra-positive, with the Fear & Greed Index running into “extreme greed,” scoring 78 on the scale yesterday and 76 today. Indicating that investors were back putting money into cryptocurrencies.
Crypto market moves into Extreme Greed | Source: Fear & Greed Index on Alternative.me
Bitcoin Market Taking The Hint
With the Fear & Greed Index in “extreme greed,” tremendous buy pressure has been on the market. Money has flooded back into the market, sending the prices of cryptocurrencies skyrocketing. Following this has been the total crypto market hitting $2 trillion again after suffering continuous lows in the preceding two months. Altcoins have seen a lot of growth with this, as has Bitcoin.
BTC price trading north of $48K | Source: BTCUSD on TradingView.com
Bitcoin price, while currently trading north of $48K, shows tremendous promise in hitting a new all-time high. Indicators point in the direction of this bull rally continuing. Momentum has held up all across the market. This means that even though the price might experience small dips, overall control of the price lies in the hands of the bulls, determined to drive the bullish vehicle for as long as possible.
Both institutional and individual investors have shown patterns of accumulation with bitcoin. Exchange inflows have fallen far below exchange outflows, indicating that investors are moving their digital assets from cryptocurrency exchanges for safekeeping in private wallets.
Featured image from Finance Magnates, chart from TradingView.com