Bitcoin Price Rises To $ 16,000 As The Market Turns Into Extreme Greed
On Nov 06, 2020
Bitcoin prices reached almost $ 16,000 during the day. The rally doesn’t stop. With its dramatic increases, BTC shows the levels of “Extreme Greed” in the Crypto Fear and Greed Index.
Currently, the world’s best-known cryptocurrency is in the rally mood. The cryptocurrency community has supported BTC’s impressive price-performance too. In the last 24 hours, the price of the leading cryptocurrency has increased by 3.75% and has climbed over $15,500. Bitcoin, which suffered heavy losses in March, has recovered well since then. During the day, its price approached almost $ 16,000. This is the highest level since January 2018.
The Fear and Greed Index Has Hit 90
While all this was happening, the Fear and Greed Index has hit 90. This level indicates that the market is in a state of “Extreme Greed.” Extreme fear is a sign that investors are very anxious. On the contrary, extreme greed is defined as a signal of correction in the market. This is the highest value achieved in more than 12 months.
The cryptocurrency market is too sensitive to emotional behavior. Therefore, the Fear and Greed Index was developed by CNNMoney to measure the crypto community’s emotions. It is based on a combination of data points, including volatility, social media, and Google trends. If it approaches zero, the market will be extremely scary, while 100 means “Extreme Greed”. As the graph below shows, the index is now in the “extreme greed” area with 90 points. The all-time high measurement was 95 on June 26, 2019.
Why Bitcoin Turn Toward “Extreme Greed”
The reason why the indicator points to extreme greed is because of the recent price action of Bitcoin (BTC). The number of new addresses joining the Bitcoin network has increased 14.89% last week, reaching the point before the all-time highs seen in November 2017. Bitcoin also has strong fundamentals that support this rally, as big companies like Square, MicroStrategy, and multi-billionaire platforms like Stone Ridge invest millions of dollars in Bitcoin.
Excessive greed usually indicates short-term rises in the markets, as it means that the market is very alive. The total cryptocurrency market cap has increased by 7.8% since this time yesterday. According to Coin360, BTC maintains its market dominance at 66.52%.
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