Bitcoin fear and greed index shows ‘extreme greed’: Will this drive a bull run?

• Bitcoin showed strong bullish signals, with high dominance and investor confidence at an extreme level.
• Bullish trends showed signs of continuing, but volatility risks remained due to exchange behaviors.

Bitcoin [BTC] continues to show strong bullish signs, with the Fear and Greed Index reaching an extreme greed level of 83. This indicates high investor confidence and growing optimism in the market. 

At press time, Bitcoin traded at $98,503.78, down 0.85% in the last 24 hours. While this suggests a strong bullish trend, it raises questions about Bitcoin’s ability to sustain this momentum or face a market correction.

Bitcoin fear and greed shows…

Bitcoin dominance was 54.5% at the time of writing, reflecting its significant influence over the overall crypto market. However, it saw a daily drop of -3.5%, which indicates a potential shift in altcoin interest. 

This suggests that other cryptocurrencies might be gaining strength, which could impact Bitcoin’s dominance in the coming days.

Therefore, closely monitoring Bitcoin dominance will provide insight into market trends and any possible changes in dominance dynamics.

Source: CoinMarketCap

A surge in investor optimism

Bitcoin’s Network Value to Transaction (NVT) golden cross experienced a notable 7.84% one-day surge, reaching 2.6. This surge signifies a growing investor interest in Bitcoin’s valuation compared to transaction volume. 

Such an increase typically indicates bullish sentiment and a more confident market outlook. Additionally, it suggests that Bitcoin’s network metrics could attract more investors, which would further drive prices upward.

Source: CryptoQuant

THIS boosts bullish sentiment

Bitcoin’s transaction count saw a daily increase of 0.94%, reaching 428.184k transactions. The rise in activity highlighted a more active BTC network and higher engagement among users. 

Such activity indicated stronger investor interest and a higher likelihood of continued bullish trends.

Therefore, a higher transaction count strengthened Bitcoin’s position in the market and supports the overall bullish outlook.

Source: CryptoQuant

Investor confidence grows

Bitcoin exchange reserves dropped by 0.04% in 24 hours, now at 2.4573 million BTC at press time.

This trend shows that BTC holders are increasingly moving their assets off exchanges, possibly into wallets or long-term storage. Such a move decreases the selling pressure on the market and strengthens bullish sentiment.

Source: CryptoQuant

Bullish investors hold steady

Bitcoin’s Long/Short Ratio was 47.31% long and 52.69% short, resulting in a ratio of 0.8979. These numbers showed that short sellers still have a slight advantage, but the high long interest reflects strong bullish sentiment.

Therefore, BTC remains resilient, with a positive outlook despite market fluctuations.

Source: Coinglass

Bitcoin’s Fear and Greed Index at 83 suggests an extremely bullish market outlook.

Read Bitcoin’s [BTC] Price Prediction 2024–2025

However, with recent metrics showing a mix of gains and drops across dominance, transaction counts, and exchange reserves, a correction remains possible. 

Therefore, Bitcoin could continue its bullish run if current trends hold, but traders should remain vigilant about potential market volatility.