- Bitcoin Greed and Fear Index, which has a strong track record of indicating trend reversals, shows that bullish movement is picking up in Bitcoin.
- The index’s 21-day SMA now indicates a bottom and provides support for upward volatility in Bitcoin.
- The regulatory agency will make a decision on approving or rejecting Ark Invest’s spot Bitcoin ETF application on August 13.
Bitcoin price remains stagnant but the Greed and Fear index signals the beginning of a bull market; spot ETF can be a catalyst!
This Metric in Bitcoin Indicates a Bull Market
The private Bitcoin Greed and Fear Index by crypto service provider Matrixport has a strong track record of indicating trend reversals and shows that bullish movement is picking up in Bitcoin.
The Greed and Fear Index measures investor sentiment; when it is above 90, it represents greed or excessive optimism, while figures below 10 represent extreme fear or pessimism. Such indicators are widely monitored due to the presence of excessive optimism or greed at market tops and fear at bottoms.
The latest data shows that Matrixport’s index has risen from 30% to 60% recently and bottomed out from the drop above 90% in July.
Markus Thielen, Head of Research and Strategy at Matrixport, said:
“The daily signal (gray) appears to have bottomed out as it reflects upward pressure. After four weeks of consolidation, this indicator has tactically turned bullish and Bitcoin prices can sustain the uptrend.”
Note the points where the index and its 21-day simple moving average historically coincide with bull and bear reversals in Bitcoin’s price. The 21-day SMA now indicates a bottom and provides support for upward volatility in Bitcoin.
Bitcoin Price Consolidates
Bitcoin has been trading calmly for a while, ranging between $28,000 and $30,000 amid volatility in traditional markets and expectations of Fed interest rate cuts in the early next year.
According to some analysts, the upcoming decision by the SEC regarding spot Bitcoin exchange-traded fund (ETF) applications could be a significant catalyst for price volatility.
The regulatory agency will make a decision on approving or rejecting Ark Invest’s spot Bitcoin ETF application on August 13. However, since August 13 is a Sunday, some analysts expect the SEC to announce its decision on Friday.
