Bitcoin fear and greed index signaled a feeling of greed

Hello dear friends.

The last few market days have been positive for the Bitcoin price. Since the 11th of this month it started a bullish rally that lifted its value to a price mark it has not visited since the middle of last year.

Source: Edited image, original from Coinmarketcap.com, the Bitcoin logo was taken from Wikipedia.org.

Perhaps as a response to the crisis that the U.S. banks are going through, the price of Bitcoin recorded a fairly significant rebound, starting a few days ago a bullish rally that increased its value to the $26,000 area, recording a new annual high.

Screenshot taken from Tradingview.com

Although at the time of this publication the price is approximately $24950, we can see that on the 14th there was an interesting increase, where prices registered a candle with a long wick that reached the $26380 mark, which represented an increase of almost 20% in just 24 hours and a return to a price zone it had not been in since June 2022.

Screenshot taken from Tradingview.com

This Bitcoin price record positively affected traders' profits, who had been experiencing for several days the lowest profitability so far in 2023. With this price increase, the Bitcoin hashprice, an indicator that measures the profitability of miners' operations, also registered a significant increase.

Screenshot taken from hashrateindex.com.

As we see in the graph above, the hashprice had fallen to approximately 0.06 USD/TH/day reaching a 3-month low, but after the price movement of these days, this downward movement in the hashprice was revised; and now miners have returned to profits above 0.07 USD/TH/day.

Now, all this market movement in recent days has meant that the Bitcoin Fear and Greed Index, an indicator used to represent market sentiment, is now at neutral.

Screenshot taken from alternative.me

As we see in the chart below, before the recent bullish rally started this index marked a value of 33, which means it was signaling that there was fear in the market, then on the 14th when the BTC price reached the $26000 mark, this index reached 56, a value signaling "greed". And now it is back to neutral, as it was last month.

Screenshot taken from alternative.me

Well friends, the current circumstances have favored the price of Bitcoin, thanks to the fact that many have returned to see the most important currency in market capitalization as a possible store of value in the face of the banking crisis. We just have to wait and see if buyers can keep the price around $25,000.

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I hope you liked the information. See you next time!