Fear And Greed Index Moves To Greed – Is Now The Time To Buy?

We also have the Bitcoin fear and greed index in extreme greed. When we are experiencing the full force of a bull market, I wouldn’t necessarily pay too much attention to this fear and greed index. At least not until we start showing some other bearish signs on the chart.

Within just two days the first-ever Bitcoin futures ETF reached over 1 billion US dollars in assets under management. This is the fastest amount of time that a new ETF has reached 1 billion us dollars in assets in the entire history of ETFs. That just goes to show that at least right now, Bitcoin is the most in-demand asset of all time.

Overview

On 20 October 2021 Bitcoin broke into a new, all-time high, just above US$67 000.00. When Bitcoin reached 65 000 it pumped around 2 000 in just a matter of minutes. Currently, we’re having an important retest to confirm this breakout. Bitcoin’s bullish trend caused a snowball effect for the rest of the market.

We have not seen this happening at all for the whole crypto market in Q4. Right now, the total market cap is roughly around 2.7 trillion US Dollars, which is a brand new, all-time high. It’s quite likely that the majority of the cryptos in the top 10 to 20 are going to see some sort of gain over the next few months.

Is Now the Time to Buy?

Many altcoins have been close to reaching all-time highs or have already broken all-time highs. Over the past seven days, we have Polkadot up 19%, Matic up 12%, but Cardano has been consolidating at the $2.00 level for some time now, but that’s before its next leg up. In my personal opinion, I would not sleep on ADA at the moment.

What we are seeing right now is a complete repeat of the past market trends. It is usually Bitcoin first that breaks out and we are starting to see this, which is then followed by altcoins. The outbreak of altcoins is more likely to happen in Q1 of 2022. We are literally seeing all altcoins fall behind Bitcoin and that’s exactly what we want.

According to the stock to flow model in on-chain metrics we’re starting to see the price of Bitcoin right where we want it. Which are two short comparisons from 2013 and 2021 that are the same trend happening for Bitcoin at the moment. According to CoinMarketCap, the market for altcoins with Bitcoin dominance is on the rise. Altcoins may show some momentum in the following days.

Altcoin Season

The altcoin season we had earlier this year resulted in a huge market value increase from 290 million to 1.3 trillion dollars back in January 2021. Another thing that we need to keep in mind is that there is a major shift in public sentiment. People have been becoming increasingly optimistic across the market. One of the key indicators is the crypto fear and greed index.

Currently looking at the index you can see that public sentiment is clearly going up. People are becoming less frightened, in other words, more bullish and greedier.

We have also recently seen a lot of institutional activity with large sums of money pouring into crypto. With the impending bull market, there’s going to be a massive chance for profit. There is nothing quite like a crypto bull market for generating wealth. Going back to altcoins, it’s not that we should be bearish on altcoins.

We just need to be a little more patient. This might be a great time for some more accumulation or if you bought at all-time highs. It would be a great time to average down.

Final Thoughts

Remember that none of this is financial advice and to always do your own research before investing. If you’re worried about ADA or your favorite altcoin not going up, just be patient. Once we confirm a breakout more likely from Ethereum, then we can start to be very bullish on the rest of altcoins.

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