As the cryptocurrency market slowed down its rally over the past weeks, which has seen Bitcoin (BTC) surpass the psychological threshold of $28,000, the maiden decentralized finance (DeFi) asset is painting more bullishness in the future as the crypto Fear & Greed Index is recording a 16-month high.
Indeed, the Fear & Greed Index is currently giving off a reading of 68, well into the ‘greed’ area, the highest level since November 2021, when the crypto industry was recording one of the most significant bull runs in its history, according to the alternative.me data retrieved on March 21.
As it happens, the crypto Fear & Greed Index on November 9, 2021, recorded a reading of 84 in favor of ‘greed,’ as demonstrated by the crypto market sentiment analysis chart that has followed these values since February 1, 2018. According to the platform’s explanation, a value of 0 means ‘extreme fear,’ whereas a value of 100 represents ‘extreme greed.’
Notably, the Fear & Greed Index takes into account a number of different indicators, including crypto trading volume, price volatility, market momentum, and social activity, and its values in the ‘greed’ zone suggest that increased investor confidence in the future performance of cryptocurrencies, while the ‘fear’ reading goes hand in hand with the ‘FUD’ (‘Fear, Uncertainty, Doubt’) sentiment.
Bitcoin price analysis
As things stand, Bitcoin is currently trading at the price of $28,055, recording a slight decline of 0.74% on the day but still hanging onto its gains of 12.97% acquired during the previous week and 13.66% on its monthly chart, as per CoinMarketCap data accessed by Finbold on March 21.
At the same time, the positive sentiment around Bitcoin is contributed by the expectation of the fourth halving event in late April or early May 2024, which is anticipated to trigger a massive price hike for the flagship digital asset in the months following the halving.
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