According to the latest chart published by crypto analysis platform Matrixport, the Fear and Greed Index, which measures market sentiment, is approaching its peak levels, while the slow moving average (SMA) has also begun to signal a peak.
Matrixport: Fear and Greed Index Nears Peak, Bitcoin Consolidation Period May Begin
While Bitcoin has generally performed strongly during periods when this indicator has been on the rise in the past, downtrends indicate weakening market sentiment and symbolize periods when investors should be cautious.
Matrixport stated that they made an upward forecast at the beginning of July, contrary to the market consensus, but with the recent evolution of the market, they switched to a more cautious approach.
The company predicts that Bitcoin will enter a period of consolidation in August. Recent trends in the Fear and Greed Index support this prediction. Despite the continued positive news, market momentum has weakened significantly.
According to Matrixport analysis, the discrepancy between current sentiment and fundamental data suggests the market may enter a “cooling phase” in the short term. Therefore, investors are advised to closely monitor market trends and implement timely risk management practices.
*This is not investment advice.
