Crypto services provider Matrixport’s bitcoin Greed & Fear Index (GFI) has climbed from below 10 per cent to 93 per cent in nearly one week
Bitcoin has logged a more than 20 per cent price growth since last Thursday. The buoyant rally may now take a customary pause.
That is according to crypto services provider Matrixport’s bitcoin Greed & Fear Index (GFI), which has climbed from below 10 per cent to 93 per cent in nearly one week.
The index tries to track the overwhelming market emotions, with above 90 per cent figures indicating greed or excessive hope and below 10 per cent readings denoting extreme fear or pessimism.
Our Bitcoin Greed & Fear Index has reached buoyant levels in record time, said Markus Thielen, head of research and strategy at Matrixport.
Traditionally, a reading above 90 per cent has coincided with short-term bitcoin price tops and below 10 per cent figure has presaged price rallies.
The 21-day simple moving average of the index is quite short of the 90 per cent mark, which means the overall path of minimum resistance for the cryptocurrency continues to be on the higher side.
The fact that the 21-day moving average is still increasing could suggest that bitcoin prices have more upside after the present phase of buoyant momentum is worked off with some consolidation, he said.
Price successfully rebounded on that throwback area and finished the dropping wedge setup. We have both the prior inverted head and shoulders target zone as well as the new falling wedge target zone. Furthermore, we have got overhead pivot resistance around $38,000, market analyst Josh Olszewicz told CoinDesk.
He said: So I expect prices to try a move towards the mid $30k range with heavy resistance and a reconsolidation before any move higher.
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