Greed

Cryptocurrency

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 <p class="paragraph">Within the most recent rally and multiple cryptocurrencies surging in price, cryptocurrency greed is back to 2021’s levels in multi-year highs. Investors and traders firmly believe that a bull market has started, setting high expectations for 2024.</p> 
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 <p class="paragraph">Fear and Greed indexes offer valuable insights into the overall sentiment in a given <a rel="dofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a> based on technical indicators.</p> 
 <p class="paragraph">Essentially, fear surges under bearish indicators and weak momentum with high selling pressure. In the meantime, greed appears during a strong momentum with an increased demand.</p> 
 <p class="paragraph">However, extreme fear is usually associated with an ‘oversold’ state, while extreme greed can often signal ‘overbought’ capitalization. Both states might trigger a trend and sentiment reversal.</p> 
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 <p class="paragraph">Notably, <a rel="dofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> ‘Greed’ reached a multi-year high of 74 on November 30, according to <em>Alternative</em>’s index. It has kept this region and now points to 73 points of greed at the time of publication on December 9.</p> 
 <p class="paragraph">Interestingly, this same level of greed was previously seen during 2021’s bull <a rel="dofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a>. Before that, the Crypto Fear &amp; Greed Index consistently regained these levels in early August 2020.</p> 
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  <img decoding="async" loading="lazy" width="1024" height="479" src="https://cdn.thebittimes.com/images/2023/12/10/9cb7eae3072d6f5bb92dcee78560587b.webp" alt="Crypto Fear &amp; Greed Index historical chart. " class="wp-image-142301" srcset="https://cdn.thebittimes.com/images/2023/12/10/9cb7eae3072d6f5bb92dcee78560587b.webp 1024w, https://cdn.thebittimes.com/images/2023/12/10/9cb7eae3072d6f5bb92dcee78560587b.webp 300w, https://cdn.thebittimes.com/images/2023/12/10/9cb7eae3072d6f5bb92dcee78560587b.webp 768w, https://cdn.thebittimes.com/images/2023/12/10/9cb7eae3072d6f5bb92dcee78560587b.webp 1536w, https://cdn.thebittimes.com/images/2023/12/10/9cb7eae3072d6f5bb92dcee78560587b.webp 2048w" sizes="(max-width: 1024px) 100vw, 1024px">
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   Crypto Fear &amp; Greed Index historical chart. Source: <em>Alternative.me</em>
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 <p class="paragraph">As we can see on the chart, the Index is volatile, and isolated peaks are not directly correlated with a bull <a rel="dofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a>. Nevertheless, when Greed (or Fear) consistently holds a certain zone, correlation shines due to a more credible indicator.</p> 
 <p class="paragraph">In comparison to what happened in 2020 and 2021, it is possible that <a rel="dofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> ‘Fear’ will dominate again before even higher ‘Greed’ levels.</p> 
 <p class="paragraph">All things considered, this multi-year high reflects what many cryptocurrency investors are feeling at this point. Furthermore, cryptocurrency’s total market capitalization currently marks $1.60 trillion, according to <em>TradingView</em>’s index. Some traders are also waiting for an Altseason to ignite.</p> 
 <p class="paragraph">Finally, if the capital inflow is able to maintain constancy and strong momentum, prices could continue surging in the following days. After that, the market might see a retracement in case greed rises too much, too fast.</p> 
 <p class="paragraph"><strong><em>Disclaimer: </em></strong><em>The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p> 
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<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/multi-year-high-greed-floods-back-into-crypto-market-why-does-it-matter-tbt73183.html">https://thebittimes.com/multi-year-high-greed-floods-back-into-crypto-market-why-does-it-matter-tbt73183.html</a></p>

Multi-year high Greed floods back into crypto market; Why does it matter?

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