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Bitcoin’s Market Steps Back from ‘Extreme Greed’ – A Positive Sign?
The cryptocurrency market has been experiencing a remarkable surge in recent times, with Bitcoin (BTC) being at the forefront of this growth. However, it appears that the market is finally stepping back from the “extreme greed” zone, which could be a positive sign for investors and traders alike.
According to on-chain analyst Dark Fost, the “extreme greed” phase marked an overheated market and potential pullback. This was evident in Bitcoin’s decline from $108k to nearly 90k. It is essential to note that this downturn led to a significant drop in Google Trends interest in the asset, which usually signals market corrections or tops.
In light of these trends, Dark Fost suggests that BTC has more room for growth in the near term. He emphasizes that overall sentiment remains positive, while interest from potential newcomers remains relatively low, potentially leading to the continuation of the bullish phase in the mid-term.
Another key indicator is the True MVRV (Market Value to Realized Value) metric, which is used to gauge whether BTC is overvalued and track the market cycle. This metric has accurately pinpointed previous local and market cycle tops. It’s worth noting that a surge to 4 marked a cycle top in most cases, whereas the current reading of 1.7 suggests that the cycle top isn’t close.
Furthermore, the Pi Cycle Top indicator is far from triggering a peak at this point. This means that Bitcoin’s market has more room for growth before it reaches its next significant correction.
In summary, Bitcoin’s retreat from “extreme greed” can be seen as a welcome relief for extended and sustainable growth in the mid-term. The potential upside was further illustrated by key market cycle top indicators that are yet to trigger a likely peak for the cryptocurrency.
Source: ambcrypto.com
