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Matrixport's Bitcoin Greed and Fear Index Suggests BTC Will Rise
Author: Omkar Godbole, CoinDesk; Compiler: Songxue, Jinse Finance
Crypto service provider Matrixport's proprietary Bitcoin Greed and Fear Index has a proven track record of flagging trend reversals, heralding a resurgent Bitcoin (BTC) bull market.
**The Greed and Fear Index measures investor sentiment, with a reading above 90% indicating greed or excessive optimism and a reading below 10% indicating extreme fear or pessimism. ** Such indicators are widely tracked because market tops are often characterized by excessive optimism or greed, while market bottoms are characterized by fear.
The latest figures show that Matrixport's index has recently risen from 30% to 60%, recovering from a decline of more than 90% in July.
Markus Thielen, Head of Research and Strategy at Matrixport said: "As the daily signal (gray) indicates upward pressure, the index appears to have bottomed out. After four weeks of consolidation, the indicator is tactically bullish and Bitcoin prices may recover Uptrend.” they said in a note to clients on Thursday.
Matrixport's Bitcoin Greed & Fear Index:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/TXHMANGBJFHH3LTTCQLUYMUDBA.png)
Matrixport Bitcoin Greed and Fear Index (Matrixport)
Note how the tops and bottoms of the index and the 21-day simple moving average (SMA) of the index have historically coincided with bullish and bearish reversals in the price of Bitcoin. **The 21-day moving average is now showing signs of bottoming out, supporting another upside move in Bitcoin. **
Bitcoin has been underperforming for some time, trading between $28,000 and $30,000 for more than two weeks amid volatility in traditional markets and expectations of an interest rate cut by the Federal Reserve early next year.
Some analysts see the upcoming SEC decision on spot exchange-traded fund (ETF) applications as a key catalyst for price volatility.
Regulators face an Aug. 13 deadline to approve or reject Ark Invest’s spot bitcoin ETF application. However, Aug. 13 is a Sunday, so some analysts expect the SEC to announce its decision later on Friday.