"Hmm if investors are getting greedy, is this the right time to make a profit?"
After Bitcoin (BTC) price broke $45,000 due to approval expectations spots BTC ETFS, cryptocurrency market sentiment turns to greed when the confident stance among investors is increasing.
The Fear and Greed Index is currently at 71/100 represents a period greedy among BTC investors, where several factors are taken into account including volatility, market momentum, social media, BTC dominance surveys and trends to analyze investor behavior.
The index has two assumptions viz extreme fear is a sign of over-worry and can be a buying opportunity while extreme greed means the market rises and is capable of a price correction.
It is well known that FOMO tends to start when BTC spikes and then investors become greedy and then impulsively buy and sell digital assets, so a significant move can pull sentiment towards extreme greed further signaling that price gains may not last long.
With BTC trading above $45,000, the number of traders watching liquidations over $140 million is also above that level and it shows $110 million of liquidations came from short positions whileThe largest liquidated order was worth $10.16 million.
Like to be informed that the BTC price increase is a follow-up to the race to launch the first BTC ETF spot in the United States (US) by traditional financial giants such as BlackRock, Ark Invest, Fidelity, Grayscale Investments, Galaxy Digital, VanEck and others.
The crypto community is expecting the Securities and Exchange Commission (SEC) to announce its decision on BTC ETF spot approval between January 8 and 10, 2024.
As of this writing, BTC price has jumped by 0.47% to $45,224 in the last 24 hours with a market cap of $885 billion and has recorded a 6.63% rise over the last week.
