- The crypto fear and greed index recently reached 74, indicating extreme greed in the market.
- Bitcoin miner revenues have soared over the past month.
The rally that Bitcoin [BTC] saw in recent weeks, caused the price to rise and stagnate at the $68,000 level. However, new data showed that the bulls’ appetite continued to increase.
Crypto Fear and Greed Index Tells You…
Data from Alternative.com showed that the crypto fear and greed index was at 74, implying that the market was extremely greedy. During this period, risk appetite increases for traders and holders as they are more likely to accumulate more BTC.
Although BTC is close to its all-time high (ATH), the increasing greed of traders indicates that there is an expectation that BTC will reach or even surpass its previously achieved ATH in the future.
Source: Alternative.com
At the time of writing, BTC was trading at $68,385.79. It would need an increase of 7.21% to reach its previous ATH. The rate at which BTC traded dropped significantly, implying that most addresses were keen to keep their BTC.
The MVRV ratio was relatively high, indicating that most holders were profitable at the time of writing.
High profitability can be a double-edged sword for BTC. On the one hand, profitability can help improve sentiment around BTC.
On the other hand, some addresses may be incentivized to indulge in profit-taking, causing selling pressure on BTC. The behavior of holders can provide insight into whether these holders decide to sell their holdings.
The difference between long and short has narrowed in recent days, indicating that the presence of short-term holders (STH) was increasing. These STHs are more likely to sell their BTC for profit, which could cause long-term volatility for the king coin.
Source: Santiment
Miners are happy
Another factor that could greatly influence the selling pressure on BTC is the condition of the miners. If miner revenues decline, miners are forced to sell their holdings to remain profitable, which can cause problems for the price of BTC.
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At the time this article was written, things were looking positive for the miners. AMBCrypto’s analysis of Blockchain.com data revealed that daily miner revenues increased from $28,435,048 to $39,241,234 in recent days.
Given these factors, the chance of a BTC correction is small.
Source: Blockchain