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, said Markus Thielen, head of research and strategy at Matrixport. Bitcoin’s price has gained more than 20% since last Thursday, and the 21-day simple moving average of the index is still rising, signaling that prices may have more upside after the current phase of exuberant momentum is worked off with some consolidation. Market analyst Josh Olszewicz believes that prices will attempt a move towards the mid $30K range with heavy resistance and a re-consolidation before any move higher. 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.
Matrixport’s Bitcoin Greed & Fear Index (GFI) has jumped from under 10% to 93% in roughly one week, signaling that the exuberant rally of Bitcoin (BTC) may now take a customary breather. 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. Bitcoin’s pullback from the mid-April high of $31,000 to the former resistance-turned-support of $25,200 early this month represented a throwback which often accelerates the price rally, as it has in the past few days. Bitcoin changed hands at $30,065 at press time, according to market data.