A Prominent Analyst Predicts a Potential Bitcoin Breakout Based on Fear and Greed Index
A well-known crypto analyst has recently shared insights suggesting that Bitcoin (BTC) may be gearing up for a significant breakout, according to a key metric.
During a recent strategy session, the pseudonymous trader Inmortal conveyed to his substantial following on X, a popular social media platform, that the Crypto Fear and Greed Index is currently signaling bullish sentiments for digital assets. The index has reached a point of “extreme fear,” a level typically associated with historical market collapses.
The Crypto Fear and Greed Index serves as a tool to assess the fear or greed levels within the market. Extreme fear indicates oversold conditions, while extreme greed suggests overbought conditions.
“Fear levels are on par with what we witnessed during the Covid-19 crash and the market bottom in 2022. This is happening concurrently with the US announcing a Bitcoin reserve,” noted Inmortal.
Furthermore, Inmortal indicated that based on historical patterns, market sentiment could remain in a state of “extreme fear” for a period ranging from six weeks to about five months.
“During the previous cycle, we experienced extreme fear three times, with each period lasting between 50 and 160 days,” he elaborated.
According to the analyst, Bitcoin appears to be following a similar trajectory as in 2024, wherein BTC retraced to a support level, erasing gains from a bullish phase before embarking on a journey to establish new all-time highs.
“We are witnessing a repeat of the past,” he emphasized.
Moreover, the analyst suggested that Ethereum (ETH) might be on the brink of a significant breakthrough akin to Bitcoin’s performance in 2020.
“While some have already thrown in the towel, I believe there is still potential for a major move if the bull run persists. We might witness something reminiscent of the past,” he stated.
At the time of writing, Bitcoin is trading at $82,874, maintaining a steady position for the day. Meanwhile, ETH is priced at $1,881, experiencing a 3.5% decline over the past 24 hours.
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Image Credit: Midjourney