The fact that the Fear and Greed Index, which measures investor sentiment in Bitcoin, moved into the “greed” zone for the first time in three months indicates that the risk appetite in the markets has increased again. In recent days, the price of the largest cryptocurrency has approached its highest level in the last two months, along with global geopolitical developments, and this has stood out as one of the main factors supporting the perception. While the index data reflected increasing confidence, it also brought to the agenda the possibility of a possible correction in the short term. Market actors are looking for a balance between the continuation of the rise and the risks that excessive optimism may create.
Critical Threshold in Bitcoin Fear and Greed Index
The Bitcoin Fear and Greed Index measures investor psychology through a combination of many indicators such as price volatility, market volume, surveys and social media interactions. The index’s rise to 61 reveals that it has entered the “greed” zone for the first time since the beginning of October. The index, which has been in fear and extreme fear zones for the last three months, reflects that investors have started to take risks again.
The strong recovery in Bitcoin’s price played a decisive role in this change. The largest cryptocurrency briefly tested the highest level in the last two months, approaching $ 98,000. While the rise in global geopolitical tension paved the way for investors to turn to alternative assets, softer messages from the US administration created limited volatility on the price. Bitcoin stabilized around $96,000, up about 7 percent on a weekly basis.
Although the index’s passage into the greed zone is seen as an indicator of increasing confidence in the market, it also carries a cautious signal for experienced investors. Historically, these levels can occasionally coincide with short-term peaks, indicating that excessive optimism can increase the risk of a correction.
Market Expectations and On-Blockchain Data
Many market commentators agree that Bitcoin’s uptrend is not over yet. Focusing on technical levels, some analysts argue that the $100,000 threshold could be tested in the coming weeks. In more ambitious predictions, targets above $ 105,000 are on the agenda and it is stated that the current price structure supports this scenario.
In-blockchain data is also among the factors that strengthen the bullish narrative. Large and medium-sized wallets holding assets between 10 and 10,000 BTC appear to have accumulated over 32,600 Bitcoins since mid-January. On the other hand, it is noteworthy that investors with very small balances tend to sell. This divergence is interpreted as a classic cycle indicating that strong hands in the market increase positions.
Evaluations from analytical platforms define the current chart as the infrastructure of a potential bull run. The difference between the accumulation process of major players and the selling pressure of individual investors was observed in the past before similar increases. This outlook continues to be closely monitored along with the improvement in sentiment indicators.
