You could argue that the cryptocurrency market maintains its confidence despite the Bitcoin price experiencing a significant drop to $94,000. Although price action says otherwise, this confidence is highlighted through various predictions from crypto analysts on social media and on TradingView, which cuts across various cryptocurrencies.

Amidst the price decline and market optimism, the Crypto Market Fear and Greed Index continues to point to greed, which leans toward the idea of a momentary dip before a broader recovery.

Bitcoin Price Crash Stalls Bullish Momentum

The crypto industry has largely exhibited bullish momentum throughout 2024, with many cryptocurrencies reaching new multi-year highs. This momentum was led by Bitcoin, which broke through its 2021 all-time high of $69,000 in the middle of 2024 to eventually break above the $100,000 psychological level for the first time on December 5.

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However, Bitcoin’s price action since crossing over the six-digit price threshold has been mostly full of corrections. Although it peaked at $108,135 on December 17, the past 12 days or so have been highlighted by price declines. Notably, Bitcoin has corrected as low as $92,600 in the past seven days, essentially leading to a cascade of declines among other cryptocurrencies and stalling the bullish momentum.

Bitcoin’s descent has surprised many crypto traders, considering its strong rally in recent months. Analysts attribute this correction to profit-taking by a few long-term holders and a temporary slowdown in market activity. 

Crypto Market Sentiment Stays In Greed

Despite recent price declines,  HODLing trends suggest that the cryptocurrency market remains on track to sustain its rally into 2025. This sentiment is reflected in the Fear and Greed Index, which continues to hover in the greed zone, signaling confidence among investors. The index is derived from a combination of key metrics, including market volatility, trading volume, social media sentiment, Bitcoin dominance, Google search trends, and surveys. Each component is carefully weighted to gauge the market’s psychological state.

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At the time of writing, the Crypto Fear and Greed Index, according to alternative.me, is at a reading of 72, which is in the Greed threshold. This relays investor confidence across the various market indicators and suggests that traders perceive the dip as a buying opportunity rather than a cause for panic.

This greed sentiment is relayed through a few buying trends across notable cryptocurrencies. For example, on-chain data from crypto analytics company Santiment shows that Dogecoin whales have bought over 90 million DOGE tokens in the past 48 hours. With this in mind, analysts are optimistic about a broader market recovery in the coming weeks. Technical indicators point to a rebound led by Bitcoin if it can continue to hold above support levels around $92,000. 

 

At the time of writing, Bitcoin is trading at $94,400 and is down by 12.8% since it reached $108,135 on December 17. According to crypto analyst Ali Martinez, such corrections (between 20% and 30%) are the best thing to always happen to Bitcoin in every bull cycle.

Featured image created with Dall.E, chart from Tradingview.com

Long-term Bitcoin holders are showing signs of growing greed as the price of BTC steadily approaches the $100,000 mark. A crypto analyst has underscored the significance of this market trend, highlighting that a possible Bitcoin market top could be incoming in the next few months. 

Long-Term Holders Stay Greedy

On-chain data from Glassnode reveal that long-term Bitcoin holders are showing a significant level of greed, which continues to intensify as the price of BTC maintains its bullish trajectory. While the flagship cryptocurrency inches closer to the anticipated $100,000 milestone, these long-term holders, or HODLers, stay relentless, showing no signs of selling their holdings despite rising prices and increasing profits.

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Data from the market intelligence platform IntoTheBlock indicates that 98% of Bitcoin holders are making profits at the current market price. This underscores Bitcoin’s remarkable performance this month, as most long-term holders acquired their holdings at prices lower than BTC’s current market valuation. 

Popular crypto analyst Ali Martinez noted in an X (formerly Twitter) post that historically, a growing increase in Bitcoin long-term holders’ greed suggests the potential for an imminent price leap to new highs. He revealed that when holders’ greed showed elevated levels in previous bull cycles, it took 8-11 months for Bitcoin to reach a new market top.

The analyst has predicted that if this trend holds true, the market should expect Bitcoin to hit a potential price peak between June and September 2025. Based on his price chart, Bitcoin long-term holders showed extreme levels of greed during the previous bull markets that followed the cyclic halving events. 

The steady increase in long-term holders’ greed can be taken as a good sign, as this suggests that fewer coins are in circulation or available for trading, ultimately creating scarcity. With demand for Bitcoin rising amidst bullish market trends, the cryptocurrency price could eventually hit the coveted $100,000 price mark. 

While the broader market and numerous crypto analysts anticipate a breakthrough to $100,000, many Bitcoin holders are demonstrating firm resolve by holding onto their assets. This unwavering courage in Bitcoin’s potential discourages panic selling during the current bull market, as the market remains optimistic about further price surges in the cryptocurrency. 

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Bitcoin Price Could Hit $100,000 Today

In a more recent X post, Martinez revealed that today could be the day Bitcoin finally reaches its $100,000 all-time high. The analyst revealed that the SuperTrend indicator on the Bitcoin hourly chart has flipped bullish, indicating that prices have broken through a resistance trend line and the Relative Strength Index (RSI).

The price of Bitcoin is currently trading at $98,288, reflecting a 7.16% increase over the past week. To reach the $100,000 milestone, the cryptocurrency needs to rise by $1,712, requiring only a 1.74% increase from its current price. 

Featured image created with Dall.E, chart from Tradingview.com

Data shows investors in the Bitcoin market have turned greedy for the first time since March 2022, after what was the longest stretch of fear ever.

Bitcoin Fear And Greed Index Now Points At “Greed”

The “fear and greed index” is an indicator that tells us about the general sentiment among investors in the Bitcoin (as well as the wider crypto) market. To represent this sentiment, the metric uses a numeric scale that runs from 0-100.

All values below 50 imply a fearful market, while those above this threshold suggest greedy holders. Although this cutoff point might look clean in theory, in practice, the region between values of 46 and 54 is generally considered to belong to a “neutral” sentiment. Real breakouts towards fear or greed only take place when the metric crosses below or above this transition region.

There are also two other “special” sentiments: extreme greed and extreme fear. The former occurs above values of 75, while the latter happens under values of 25. The significance of these extreme sentiments is that tops and bottoms have historically tended to form when the investors have held these mentalities.

Because of this, some traders believe extreme fear periods provide ideal buying opportunities (as bottoms have taken place here), while times with extreme greed could be the best selling windows (since tops occur here).

A trading strategy called “contrarian investing” is based on a similar idea. As Warren Buffet said in his famous quote, “be fearful when others are greedy, and greedy when others are fearful.”

Now, here is how the current sentiment among Bitcoin (and wider crypto) investors looks like:

A greedy cryptocurrency sector | Source: Alternative

As can be seen above, the Bitcoin fear and greed index has a value of 55 right now, suggesting that the market has now properly entered into the greed zone. Before this break into the region, the sector had been in the fear region nonstop since March 2022, around ten months ago.

The below chart shows how the metric’s value has changed during the past year.

Looks like the metric has observed some growth in recent days | Source: Alternative

From the graph, it’s visible that the indicator had spent almost the entire past year not just in the fear zone, but actually all the way down in the extreme fear region. There was only one proper spike into greed during this period, and that was the aforementioned March 2022 instance. This previous surge had only lasted for a single day before the market became fearful again.

These continuous streaks of fear and extreme fear during the past year were both the longest runs in the history of the indicator. Greed finally returning to the Bitcoin market after all this while could mean that investors are ready to embrace some bullish action once again, which could be a positive sign for the current rally.

BTC Price

At the time of writing, Bitcoin is trading around $22,900, up 9% in the last week.

The value of the asset seems to have been consolidating in recent days | Source: BTCUSD on TradingView

Featured image from André François McKenzie on Unsplash.com, charts from TradingView.com, Alternative.me

Data shows the Bitcoin market has turned greedy again after almost three months of fear sentiment among investors.

Bitcoin Market Becomes Greedy Again After Almost Three Months Of Fear

The relevant indicator here is the “fear and greed index,” which tells us what the general sentiment among investors currently is.

The metric uses a numeric scale that goes from zero to hundred for representing this sentiment. All values below fifty fall into the “fear category,” while those above belong to “greed.”

When the index shows extreme values of above 75 and below 25, the market sentiment is that of extreme greed and extreme fear, respectively.

Some investors prefer to sell when the market is extremely greedy as tops have historically formed during such periods. Similarly, they also think buying during extreme fear is better as bottoms tend to usually occur then.

Related Reading | No New Lows: “Parabolic” Bitcoin Indicator Could Suggest The Local Bottom Is In

There is a famous Warren Buffet quote that resonates with this philosophy: “be fearful when others are greedy, and greedy when others are fearful.”

Now, here is a chart from this week’s Arcane Research report that shows the trend in the Bitcoin fear and greed index over the past year:

The indicator's value seems to have sharply risen recently | Source: The Arcane Research Weekly Update - Week 5

As you can see in the above graph, when the report came out yesterday the market sentiment had almost exited the fear territory as the indicator showed a value of 48.

Since November, the market had been quite fearful, often dipping into extreme fear. But recently the metric has observed a sharp uptrend, and today, the investor sentiment is finally back to greed for the first time in three months as the index’s value is now around 54.

The Bitcoin fear and greed index has now crossed the fifty mark | Source: Alternative.me

The market sentiment turning to that of greed can prove to be bullish for the price of Bitcoin as sucha sentiment usually occurs during bull rallies.

Related Reading | Bitcoin Taker Buy/Sell Ratio Shows “Buy” Signal As BTC Lifts Off

BTC Price

At the time of writing, Bitcoin’s price floats around $43.5k, up 13% in the last seven days. Over the past month, the crypto has gained 5% in value.

The below chart shows the trend in the price of BTC over the last five days.

BTC's price seems to have surged over the past few days | Source: BTCUSD on TradingView

Over the past couple of weeks, Bitcoin has enjoyed some sharp uptrend. Yesterday, the price of the crypto briefly broke past the $45k mark, but it wasn’t long before the coin came back down to the current levels.

Featured image from Unsplash.com, charts from TradingView.com, Arcane Research