1200″ height=”686″ alt=”Is the Crypto Fear and Greed Index hinting at a market trend reversal?” decoding=”async” fetchpriority=”high” data-old-src=”data:image/svg+xml,%3Csvg%20xmlns=’http://www.w3.org/2000/svg’%20viewBox=’0%200%201200%20686’%3E%3C/svg%3E” srcset=”https://ambcrypto.com/wp-content/uploads/2024/07/Crypto-fear-and-greed-index-1200×686.webp 1200w, https://ambcrypto.com/wp-content/uploads/2024/07/Crypto-fear-and-greed-index-300×171.webp 300w, https://ambcrypto.com/wp-content/uploads/2024/07/Crypto-fear-and-greed-index-1024×585.webp 1024w, https://ambcrypto.com/wp-content/uploads/2024/07/Crypto-fear-and-greed-index-768×439.webp 768w, https://ambcrypto.com/wp-content/uploads/2024/07/Crypto-fear-and-greed-index-1536×878.webp 1536w, https://ambcrypto.com/wp-content/uploads/2024/07/Crypto-fear-and-greed-index.webp 1792w” src=”https://ambcrypto.com/wp-content/uploads/2024/07/Crypto-fear-and-greed-index-1200×686.webp”/>
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The whole crypto market has actually been experiencing a bull rally over the recently, as leading coins signed up double-digit gains.
The crypto worry and greed index was sitting at a “greed” position at press time, recommending that there may be a pattern turnaround quickly.
What the crypto worry and greed index recommends
The cost of the king coin, Bitcoin [BTC]stayed bullish over the recently as it traded above the mental resistance of $65k. Based on CoinMarketCap, BTC’s rate increased by more than 4% in 7 days.
At the time of composing, BTC was trading at $66,744 with a market capitalization of over $1.29 trillion. Apart from Bitcoin, Ethereum [ETH] bulls likewise controlled the marketplace as its rate increased by over 2% in the previous 7 days.
AMBCrypto then had a look at the worry and greed index to see whether the marketplace was preparing for a correction.
Based on our analysis, at the time of composing, the crypto worry and greed index had a reading of 69, implying that the marketplace remained in a “greed” stage.
Whenever the sign strikes that level, it shows that the opportunities of a cost correction are high.
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Source: Alternative.me
Will BTC set off the drop?
AMBCrypto then examined BTC’s rainbow chart to see whether it suggested a rate correction, which may lead to a whole market correction.
According to our analysis, BTC’s rainbow chart recommended that the coin was still inexpensive to purchase. This plainly implied that financiers still have the chance to collect more BTC before its cost skyrockets.
According to the chart, BTC may touch $1.23 million before the marketplace enters a FOMO phase.
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Source: Blockchaincenter
AMBCrypto then had a look at CryptoQuant’s information to discover what metrics recommended. We discovered that BTC’s exchange reserve was dropping, indicating that offering pressure on the coin was low.
Things in the derivatives market likewise looked quite positive as BTC’s Funding Rate increased. The Taker Buy Sell Ratio turned red. This implied that derivatives financiers were offering BTC at press time.
Source: CryptoQuant
Check out Bitcoin’s [BTC] Cost Prediction 2024-25
The marketplace indications looked quite bearish on the coin. The Relative Strength Index (RSI) signed up a downtick. Its Money Flow Index (MFI) likewise followed a comparable pattern as it went southward.
This plainly suggested that the opportunities of a rate correction were high. The MACD stayed in the bulls’ favor, hinting at an ongoing cost increase.
Source: TradingView
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