Bitcoin Surges Above $60,000 as Market Sentiment Enters ‘Extreme Greed’ Territory – Decrypt
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Bitcoin (BTC) has broken through the $60,000 barrier with strong bullish momentum, reaching a peak of $60,700 before slightly retracing to its current price of $60,503.
Within the last 24 hours, Bitcoin has seen an impressive 6.2% surge, bringing its weekly gain to 18.3% and a remarkable 158% increase over the past year. The market is buzzing with excitement over this rally and the factors driving it.
This recent price surge can be largely attributed to a surge in institutional interest, following the approval of 11 Bitcoin exchange-traded funds (ETFs) in the US earlier this year. This has attracted institutional investors to the crypto market in search of profitable opportunities.
Additionally, the highly anticipated Bitcoin halving event scheduled for April is adding fuel to the fire. Historically, halvings have led to significant bull runs as mining rewards are halved, reducing the inflation rate of new Bitcoin supply by 50%.
Positive Indicators in Bitcoin Charts
Several technical indicators signal a very bullish future for Bitcoin. The relative strength index (RSI) is currently at 86, indicating that BTC is heavily overbought. The average directional index (ADX) is at 39, reflecting a strong upward trend. The widening gap between the EMA10 and EMA55 suggests a rapid upward movement in price.
Greedy Traders and Market Sentiments
The Crypto Fear and Greed Index currently sits at 82, marking a phase of “extreme greed” in the market for the first time since 2021. This aligns with the bullish sentiment seen in the charts as traders exhibit confidence in upward momentum.
Interestingly, market sentiment has shown a consistent upward trend since June 2022, a shift from reacting violently to news and events. In contrast, the S&P 500 Fear and Greed Index has been in “extreme greed” territory since December 2023 due to the hype around AI stocks.
The overall crypto market is reflecting Bitcoin’s bullish sentiment, with a $1 billion increase in total market capitalization over the last 24 hours, growing from $2.2 trillion to $2.3 trillion. PEPE is leading the charge with a 41% increase in 24 hours, while BitTensor (TAO) has seen a 3% drop.
Compiled by Stacy Elliott.
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