The leading cryptocurrency Bitcoin gained a huge upward momentum after the spot Bitcoin ETF applications from the world's largest financial companies.
Retrieving the $30,000 level that was last seen in April, BTC is currently trading at $30,045 with a market cap of $583 billion.
Speaking to Coindesk, Matrxiport head of research and strategy Markus Thielen stated that with the rise in Bitcoin, Matrixport's Bitcoin Greed and Fear Index has risen above 90%.
Stating that the index rises above 90% represents greed or excessive optimism, and below 10% represents extreme fear or pessimism, Markus Thielen said that historically such rises coincide with intermediate peaks in Bitcoin:
“Our Bitcoin Greed and Fear Index reached exuberant levels in record time, hitting over 90%.
This can be a good advice or opportunity for short-term investors to take the gains from the bullish trade.
Because historically, the index going over 90% coincided with Bitcoin's intermediate peaks. Similarly, the index falling below 10% was a harbinger of price rallies."
Finally, noting that the index is still below its 21-day simple moving average, Thielen said that this shows that BTC will experience a consolidation phase for a while and then continue to rise.
“The fact that the 21-day moving average (indicated by the black line) on the index is still rising indicates that the current enthusiastic bullish phase will continue with some consolidation, with BTC prices going further up after this consolidation phase.”
*Not investment advice.
