Bitcoin investors show greed for the first time since May.

The data shows that for the first time since May, Bitcoin investor sentiment has turned to greed, as the asset’s price has shot up towards the $29,000 level.

The Bitcoin Fear & Greed Index is Pointing at “Greed” Now

The “Fear & Greed Index” is an indicator that reflects the general sentiment among investors in the Bitcoin and wider cryptocurrency market. The metric uses a numerical scale from 0-100 to represent this sentiment.

Values of the index above 54 indicate that investors are currently greedy, while those below 46 suggest the presence of fear in the market. Values between 47-53 signify a neutral mentality.

In addition to these core sentiments, there are also two special ones called “extreme fear” and “extreme greed.” The former occurs at values of the indicator below 25, while the latter takes place at values above 75.

Historically, these two extreme sentiments have been quite significant for the market, as bottoms and tops have tended to occur during periods of extreme fear and extreme greed, respectively.

Currently, the Bitcoin Fear & Greed Index has a value of 59, indicating that the majority of investors hold a sentiment of greed right now.

This is a recent change, as the indicator had lower values during the last few weeks. The chart shows how the metric’s value has changed over the past year.

From the graph, it’s visible that the Bitcoin fear and greed index had seen a plunge during early May and had fallen down to neutral territory. In the weeks that followed, the metric had only managed to break into the greed territory just once (16 May) and had instead gone down into the fear zone on a couple of occasions.

This worsening of the market sentiment had naturally come alongside the price of the asset registering a decline, as investors weren’t quite sure if bullish winds would return to the sector.

In the past day, however, the investor mentality has notably improved, as only yesterday the index had a value of 49, implying that the investors had been neutral.

This strong uplift in the sentiment towards greed has occurred as Bitcoin has observed a strong surge, which has taken the price near the $29,000 level. The improvement in the mentality can be a positive sign for the rally, as it implies that the general investor is supportive of the current price increase.

If the indicator continues to rise in the coming days and enters into the extreme greed territory, however, it might backfire for the asset. As mentioned before, high levels of greed have generally led to top formations for the asset.

BTC Price

At the time of writing, Bitcoin is trading around $28,900, up 11% in the last week.

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