Bitcoin bottoming out and preparing for massive rally, according to KOL Nicholas Merten
Renowned analyst Nicholas Merten has highlighted a key indicator that Bitcoin is bottoming out and preparing for a major rally.
In one Video Merten is taking a new look at the Greed and Fear Index, an index that measures the general sentiment of crypto investors and traders using a variety of data sources such as social media, Google trends and Google surveys.
Merten points out that when the greed and fear index shows maximum optimism and euphoria, this is often the right time to sell. On the contrary, if, like now, this indicator shows extreme pain and anxiety, it is often an opportunity to buy.
“When people are afraid, we have to get greedy. And when the general market is greedy, we must be afraid. When the market heats up and everyone is taking high risks, getting more into cryptocurrencies and not really caring about their prices, that’s extreme euphoria and we should be considering selling at this point.
Greed and Fear Index | Source: alternative
The analyst says that the greed and fear index usually doesn’t stay in the extreme fear zone for too long, and when it cools down, the price usually goes up with it.
“You understand so easily. Whether you think it’s a bear market or a sharp mid-cycle correction, the really interesting thing is that the greed and fear index doesn’t stay in that extreme fear zone for too long. If it moves as high here as it did in May, August, it means that the Bitcoin and crypto markets are optimistic. “
Disclaimer of liability: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Dailyhodl