The Bitcoin Greed & Fear Index is a tool that is unique to Matrixport, a company that offers services in the cryptocurrency space. This index has been good at spotting changes in trends, and right now it shows that people are once again optimistic about bitcoin (BTC).
The purpose of the Greed & Fear Index is to measure how investors are feeling. When the reading goes over 90%, it shows that there is too much optimism or greed, and when it goes below 10%, it shows that there is too much fear or pessimism. People pay close attention to these numbers because market peaks are often marked by a lot of optimism or greed, while market bottoms are often marked by a lot of fear.
Recent information from Matrixport’s index shows a change from 30% to 60%, which shows a trend up. This comes after the index went down in July. In July, it went from being above 90% to a lower level.
Index at its lowest?
Markus Thielen, who is in charge of research and strategy at Matrixport, said that the index seems to have reached its lowest point, since the daily signal shows that there could be pressure to go up. After four weeks of staying the same, this signal is showing a tactical shift toward positivity, which could cause bitcoin prices to start going up again. In a note to clients on Thursday, Thielen told them about these ideas.
Historical patterns show a link between the index’s highs and lows and its simple moving average (SMA) for the last 21 days. This has been the case when the price of bitcoin has changed to a bullish or bearish trend. At the moment, the 21-day simple moving average (SMA) is showing signs of reaching a minimum. Which adds to the case for a new surge in positive volatility for bitcoin.
Bitcoin’s price has been pretty stable for a long time, staying between $28,000 and $30,000 for more than two weeks. This slowdown happened at the same time as market turmoil in traditional financial sectors. Along with expectation that the Federal Reserve would cut interest rates in the first few months of the next year.
Some analysts think that the upcoming decision by the U.S. Securities and Exchange Commission (SEC) about whether or not to approve a spot exchange-traded fund (ETF) will be a big factor in how volatile prices are. The SEC has until Sunday to decide whether to approve Ark Invest’s request for a bitcoin ETF or turn it down. Some experts think that the decision could come as soon as this Friday.