Greed & Fear index algorithm calculates messages, forecasts and other reactions of market participants. When the index falls below 10 points, then experts talk about “extreme fear,” and if above 90 – “extreme greed.. With fear, it’s time to buy bitcoins, and if the market is overly greedy, it’s better to sell.
“Our index has reached incredible levels in record time. Short-term traders would be wise to lock in a certain level of profit,” says Markus Thielen, head of research and strategy at Matrixport.
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The analyst warns: bitcoin could still rise in the short term – the 21-day moving average has only reached 50 points, so a rise in the value of the asset is possible.
Earlier, a popular cryptocurrency analyst under the nickname Pentoshi said that bitcoin may well continue to rise and its rate may reach $32,500, the highest value since May 2022.