The start of 2023 has been favorable for Bitcoin, with the cryptocurrency experiencing a significant increase of more than 60 percent.
This surge has led to positive market sentiment, as evidenced by the Fear and Greed Index, which has reached its highest level this year. So, is that mean “Greed is Back“.
Current Score of Fear and Greed Index
The Fear and Greed Index is an important tool used to gauge the emotions and sentiments of the market.
At the time of writing, the index score is at 62, indicating that greed is back in the market. This score is not extremely high, but it is steadily increasing.
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| Source: Alternative.me |
Typically, when the Fear and Greed index score is low, the market is reaching its bottom, and when the score is high, a top is likely to occur.
A Score of Over 80-85 Could Signal a Bitcoin Price Top
Although it is not certain, if the index score climbs over 80-85, it may indicate that the Bitcoin price top is close.
However, it is not advisable to base an entire trading strategy solely on the Fear and Greed Index, as it is not always accurate.
Rather, it should be used as a tool to determine the general direction of the market sentiment.
Positive Sentiment for Bitcoin
The current uptick in the market sentiment confirms that things are moving in the right direction for
Bitcoin.
The last time the Fear and Greed Index recorded a score above 66 was a few days after Bitcoin’s all-time high of $69,000 on November 10, 2021.
This indicates that it has been a while since the market sentiment was positive for Bitcoin.
Is This the Start of a New Bull Market?
The increase in sentiment is a positive sign for Bitcoin and may mark the beginning of a new
bull market.
However, this outcome will largely depend on the further development of the macroeconomic situation that we are currently witnessing.
If banks experience significant crises, and money printers turn on again, there is a high likelihood that Bitcoin will continue to perform well.
My rough prediction for the next twelve months:
— Ryan Selkis 🪳 (@twobitidiot) March 17, 2023
1. More bank failures in the next couple of weeks.
2. Fed cuts / QE is back!
3. BTC climbs, sustained moderate inflation.
4. “Outside Money” / “Sound Money” -> $100k / BTC.
5. Institutions buy faster than Feds can shut down.
Game.
Conclusion
The Fear and Greed Index is an essential tool for investors and traders to determine market sentiment. Currently, the index score is at 62, indicating that greed is back in the market.
This positive sentiment, combined with Bitcoin’s recent uptick, signals a potential start of a new bull market.
However, it is important to remember that the market sentiment can change quickly and drastically, and it is not always a reliable indicator.
