XTB Notes Bitcoin Market Sentiment Hits Yearly High

XTB Notes Bitcoin Market Sentiment Hits Yearly High

As Bitcoin breaks and now reproaches breaking the critical resistance point of $12,000 per BTC, market sentiment surrounding Bitcoin is at a yearly high.

With global socioeconomic instability, many are searching for the safest assets to be able to protect and store value. After closing in and briefly breaking the $12,000 per Bitcoin mark, the Bitcoin market is seeing its highest level of market sentiment since August of 2019. However there is room for caution, as the “Fear & Greed Index”, aptly named to quantify the amount of fear and greed in the market, peaked at an “extreme greed” level of 80 before dropping back now to the normal “greed” level. According to this index, historically, a high level of extreme greed correlates to a topping out of the Bitcoin price; the last time this fear and greed index reached a level of 80 was in June 2019 where the price of Bitcoin rose by 50% in approximately 10 days. As we continue to see bullish sentiment in the market, be diligent about this influx of money represents.

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