The past 30 days held the most bullish and exciting times for many Bitcoin (BTC) investors. The leading cryptocurrency showed off solid momentum in price, making a new all-time high (ATH) above $19,900. Amid the growing price of Bitcoin at that time, the emotions and sentiments of investors in the market quietly became greedy. As Bitcoin failed to break the $20,000 resistance, its price began dropping gradually.
Judging by the interpretation of the crypto fear and greed index, the current correction corresponds with the “greed” indication then.
November: The Most Greedy Month Ever
On Tuesday, the fear and greed index clicked 95, suggesting an extreme level of greed among Bitcoin investors. However, the score was reduced to 86 today during the time of the report. The Bitcoin market is still too greedy, although today’s score was lower than the record yesterday. Meanwhile, the past seven days had an average record of 92, while the past 30 days (November) reached 90.
An index of zero suggests that the Bitcoin market is in extreme fear, while 100 means a too greedy market. On that note, ICO Analytics tweeted that November was the most greedy month ever recorded.
The most greedy month ever. Crypto Fear & Greed Index shows that during last 30 days the average index value was above 90 and month to date the index is above 93. Index shows the current sentiment of the Bitcoin market. Zero means "Extreme Fear", while 100 means "Extreme Greed" pic.twitter.com/yyMwjnFpgN
— ICO Analytics (@ICO_Analytics) December 8, 2020
This somewhat explains the current correction in the Bitcoin and cryptocurrency market at large. When investors are in extreme fear, the index provider – Alternative.me – said it means a buying opportunity. This usually happens whenever Bitcoin investors worry too much about the cryptocurrency. However, an extremely greedy market suggests the best time to sell-off the cryptocurrency as investors get too greedy – wanting more profit.
Know When to Buy and Sell in Bitcoin Market
According to Alternative.me, such a market condition indicates that the cryptocurrency is due for a correction. This is typically the case with Bitcoin today, as the price has been gradually shading points since this week. Billionaire investor Warren Buffett once said:
“Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful.”
Bitcoin and other cryptocurrency investors can choose to play through the market with this as a guide, although it was specifically directed to equity traders/investors.