Fall in the price of bitcoin in 3, 2 … 1? The index of fear and greed is approaching the dangerous record

Bitcoin (BTC) is almost guaranteed to drop in prices if a sentiment metric is correct about the state of the market.

On November 19, with BTC / USD lingering at $ 17,500, the Crypto Fear & Greed index hit 94, nearly equaling its all-time high of 95 points out of 100 on June 26, 2019.

Fear & Greed hits “sweet tooth” in 17 months

Compiled using multiple estimates of investor sentiment, the Crypto Fear & Greed Index provides a normalized score out of 100 to gauge how overbought or oversold the cryptocurrency markets really are. The closer the number is to 100, the greater the chances that the market is due to a pullback.

Strongly tied to price action, the index has managed to call price highs with remarkable accuracy since its inception in early 2018.

“The behavior of the cryptocurrency market is very emotional. People tend to get greedy when the market is rising, which results in FOMO (Fear of missing out),” the developers explain on the official website of the metric.

“Also, people often sell their coins in an irrational reaction to seeing red numbers. With our index of fear and greed, we try to save you from your own emotional reactions. “

At the end of June 2019, the index hit its all-time high – 95 out of 100 – and on Thursday at press time, the record was just one point higher than current readings.

Meanwhile filbfilb, Cointelegraph Markets analyst highlighted that the market structure of 2020 is “very similar” to 2019.

Can strong hands avoid a dip?

As Cointelegraph reported, a series of charts monitoring Bitcoin market activity reached all-time highs this week, with their impact being far more bullish.

Analysts basically stopped before calling the current bull run too hasty, given its “organic” nature, in the words of statistician Willy Woo, compared to his clip at an all-time high in 2017.