Matrixport's Bitcoin Greed & Fear Index Surpasses 90%, Suggests Bull Breather Ahead
Historically, an above 90% reading on the index has coincided with interim market tops.
Bitcoin (BTC) has chalked up a more than 20% price gain since last Thursday. The exuberant rally may now take a customary breather.
That's the message from crypto services provider Matrixport's bitcoin Greed Fear Index (GFI), which has jumped from under 10% to 93% in roughly one week.
The index attempts to track the overriding market emotions, with above 90% readings signaling greed or excess optimism and below 10% figures representing extreme fear or pessimism.
"Our Bitcoin Greed Fear Index has reached exuberant levels in record time. It could be well advised to lock in some gains for short-term traders," Markus Thielen, head of research and strategy at Matrixport, said in an email.
Historically, an above 90% reading has coincided with interim bitcoin price tops and below 10% print has presaged price rallies.
The 21-day simple moving average of the index is well short of the 90% mark, which means the overall path of least resistance for the cryptocurrency remains on the higher side.
"The fact that the 21-day moving average (black line) is still rising could signal that bitcoin prices have more upside after the current phase of exuberant momentum is worked off with some consolidation," Thielen added.
Some chart analysts suggest scope for a rally to $35,000 and higher.
"Price successfully bounced on that and completed the falling wedge setup. We have both the prior target zone as well as the new falling wedge target zone. Additionally, we've got overhead pivot resistance around $38,000," market analyst Josh Olszewicz told CoinDesk.
"So I expec t prices to attempt a move towards the mid $30k range with heavy resistance and a reconsolidation before any move higher," Olszewicz added.
Bitcoin's pullback from the mid-April high of $31,000 to the former resistance-turned-support of $25,200 early this month a "throwback". The pattern often accelerates the price rally, as it has in the past few days.
Bitcoin changed hands at $30,065 at press time, according to CoinDesk data.
Ether (ETH), the second-largest cryptocurrency by market value, has gained 15.9% since last Thursday, underperforming bitcoin by a notable margin. Ether's GFI index is yet to reach 90%, meaning it could continue to rise, while bitcoin takes a breather.
Edited by Parikshit Mishra.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
VIPBitget VIP Weekly Research Insights
The Base chain has recently seen several major strategic developments: Coinbase has integrated DEX routing for Base on its main app, bridging the gap between CeFi and DeFi liquidity; Shopify has partnered with Base to expand real-world applications and user access points. At the same time, Circle and Coinbase stocks have surged by over 700% and 50% respectively, creating a wealth effect that may spill over into the Base ecosystem—boosting both its TVL and token prices. Recommended projects include: 1) AERO (Aerodrome)—The leading DEX on Base, showing strength despite market downturns; well-positioned to benefit from Coinbase integration. 2) BRETT—A flagship memecoin on Base with over 840,000 holders; likely to lead the next Base memecoin rally. 3) New tokens on Bitget Onchain—Offer early access to emerging Base memecoins while helping users avoid high-risk tokens.
VIPBitget VIP Weekly Research Insights
Recent bullish news surrounding a potential Solana ETF has reignited market optimism. The SEC has asked issuers to update their S-1 filings, signaling that ETF approval could be near. This development has boosted confidence in the Solana ecosystem. As a high-performance Layer-1 blockchain, Solana (SOL) offers fast transactions and low fees, making it a hub for DeFi and NFT activity, while also drawing increasing institutional interest. Jito (JTO), the leading liquid staking protocol on Solana, saw its token surge 17% after JitoSOL was included in a Solana ETF prospectus. Its MEV optimization further enhances network value. Jupiter (JUP), Solana's top DEX aggregator with a 95% market share, recently launched a lending protocol, highlighting strong growth potential. These tokens offer investors early exposure ahead of a possible ETF approval and a chance to benefit from Solana's expanding ecosystem.
Can Solana Ride the Nasdaq Hype to Close Q2 Above $160?
Solana's price rise is fueled by renewed institutional interest and growing trader participation, positioning SOL for a potential breakout above $160.
Bitcoin: Scarcity Deepens With Every Block Mined
Crypto prices
More
