Bitcoin Poised for Rally as Crypto Fear Index Hits Extreme Levels
In a recent strategy session, pseudonymous trader Inmortal told his 230,900 followers on X that the Crypto Fear and Greed Index is signaling a potential bullish move for Bitcoin. The index has reached an “extreme fear” level, which has historically indicated oversold conditions and often precedes market rallies.
Crypto Fear and Greed Index: A Bullish Signal for Bitcoin
The Crypto Fear and Greed Index measures market sentiment, with readings of extreme fear signaling that assets may be undervalued, while extreme greed suggests the market may be overbought. Inmortal notes that the fear level is similar to the ones seen during significant market crashes, including the Covid-19 crash and the 2022 market bottom.
“Fear is at the same levels we saw during the Covid-19 crash and the 2022 bottom, all while the US announced a Bitcoin reserve,” Inmortal explained.
Historically, periods of extreme fear have lasted anywhere from 50 to 160 days, according to Inmortal’s analysis. He believes that Bitcoin is repeating a pattern seen in 2024, when BTC tested a support level, erased gains from a previous bullish run, and then surged to new all-time highs.
“We are doing this again,” Inmortal stated.
Ethereum (ETH) May Follow Bitcoin’s 2020 Pattern
Inmortal also speculated that Ethereum (ETH) could be on the verge of a breakout similar to Bitcoin’s surge in 2020. Although he noted that the market could turn in either direction, he highlighted that ETH’s potential for growth mirrors the conditions that led to Bitcoin’s 2020 bull run.
Conclusion
The Crypto Fear and Greed Index suggests that Bitcoin may be nearing a bullish breakout, with extreme fear signaling a potential shift in sentiment. Inmortal’s analysis indicates that Bitcoin and Ethereum could be on the cusp of repeating historical patterns that led to significant rallies in the past. As always, crypto markets remain volatile, and traders are advised to keep an eye on key indicators.
Editorial Team
Reporter at Coindoo
