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Analysis: Bitcoin Sentiment Indicator Rises to Two-Year High as Market Frenzy Cools

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Mars Finance reported on September 12 that CryptoQuant analyst Darkfost said Bitcoin’s recent rise has pushed investor sentiment to its strongest level since March 2024. The market sentiment indicator he tracks briefly surpassed 89/100, entering the “extreme greed” zone.

The indicator incorporates multiple data points, including the Fear and Greed Index, and ranges from -100 to +100, corresponding to extreme fear and extreme greed, respectively. Darkfost noted that when market sentiment becomes extremely optimistic or pessimistic, it can often signal a potential trend reversal.

Currently, as the market frenzy seen earlier gradually fades, the sentiment indicator is falling back to more normal levels, while Bitcoin continues to struggle to hold its current price range.

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ThroneGuard
an hour ago
Greed Index at 89? The classic contrarian indicator has arrived.
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SectorRotator
2 hours ago
Sentiment is at a fever pitch, and veteran crypto traders have already started trimming their positions and waiting for a pullback.
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CrossChainSmuggler
2 hours ago
Every bout of extreme greed is a turning point in the story. Will this time be different?
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FloorThermometer
2 hours ago
Darkfost’s data is quite accurate, but the lag in sentiment indicators also needs to be taken into account.
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MintOrMiss
3 hours ago
First Review
The pullback in the indicators suggests the market has cooled somewhat, but holding the range is the real battle.
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