"Hmm if investors are getting greedy, is this the right time to make a profit?"
After the price of Bitcoin (BTC) broke $45,000 due to the expected approval of spot BTC ETF, cryptocurrency market sentiment turned to greed as the bullish stance among investors increased.
The Fear and Greed Index which is currently at 71/100 represents the period of greed 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 that extreme fear is a sign of over-concern and can be a buying opportunity while extreme greed means the market is bullish and capable of a price correction.
It is well known that FOMO tends to start when BTC spikes and then investors become greedy following impulsive buying and selling of the digital asset, so a significant move can pull sentiment towards extreme greed and signal that the price increase may not last long.
With BTC trading above $45,000, the number of traders who saw liquidations over $140 million is also above that level and this shows that $110 million of the liquidations came from short positions while the 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 expects the Securities and Exchange Commission (SEC) to announce its decision on spot BTC ETF approval between January 8 and 10, 2024.
As of this writing, the price of BTC has jumped by 0.47% to $45,224 in the last 24 hours with a market cap of $885 billion further recording a 6.63% climb over the last week.
