Bitcoin (BTC) is only a guaranteed drop in price if the market valuation is correct.
On November 19, with the long-term BTC / USD rate of $ 17,500, the Crypto Fear & Greed Index reached 94, which equates to roughly 95 flat points out of 100 on June 26, 2019.
Fear and greed became the most greedy in 17 months
Several evaluations of investor sentiment have been used in the preparation, and the Crypto Fear & Greed Index gives a normal score of 100 to gauge how overbought or oversold in the cryptocurrency markets actually is. The closer the number is to 100, the more likely the market will fall.
Closely linked to price action, the index has successfully detected price peaks with great accuracy since its launch in early 2018.
“The behavior of the cryptocurrency market is very emotional. People tend to be greedy when the market grows, which leads to fear of getting lost,” the developers explain on the official account website.
People often sell their coins in an irrational reaction when they see red numbers. With our fear and greed indicator, we try to save you from your emotional response. ”
At the end of June 2019, the index reached its highest level – 95 out of 100 – and at time of publication Thursday in the press, the record was only one point higher than today.
Historical chart of the coded greed and fear index. Source: Alternative.me
Meanwhile, Cointelegraph Markets filbfilb analyst confirmed that the market structure for 2020 is “very similar” to 2019.
Can strong arms handle a fall?
As Cointelegraph reported, a number of charts tracking Bitcoin market activity reached record levels this week, and their impact was certainly more optimistic.
Analysts have largely stopped describing the current bull rune as being too hasty due to its “organic” nature, according to statistician Willie Wu, compared to the clip that hit its highest levels in 2017.
Basically, Wu and others argue that strong hands are buying this year’s exhibits, while hobbyists and speculators are excluded.
This possibility is backed by data showing a slew of coins leaving mining for cold storage and other long-term wallets, as well as whale buying activity.