There is less greed during the current rally than a similar rally like this that we had after the 2018 bottom formed. This could possibly be very good.
2 min read
One very simple trait that all of us here have is to try to know or predict when the next bounce/dump will happen and when this rally or bear rally will actually end. Thats completely normal for us humans to try and predict the future and thus feel some more sense of security. Now as we just had this crazy 40% rally this month we should try to analyse how sustainable it actually was.
To do that, we have to look at the sentiment here. It is very obvious that once we go towards some euphoric sentiment, the rally is near its end and if we are in disbelief there is a chance that the rally may presume. There is no real metric that can actually say that but we have a metric that tries to guess it and is widely known: The Fear and Greed index.
This chart has overlayed the Fear and Greed index with the BTC price which gives us a greater sense to compare it. Currently we are in the Greed area with a score of 55 out of 100, this is highest since about 10 months. If we want to really know what kind of sentiment it is, the best way is to compare it to similar scenarios and the 2018 bottom formation could be very similar.
Now looking back then, a rally from $3.5k to $4k lifted the F&G index from 21 to 69 and that was not it, after a small correction it got lifted to over 60 again and remained there constantly. The same could happen now ,even if we did not even reach the same heights, a small correction and then a lift back up. Anyway our current F&G score leaves a lot of upside in relative to other bear market rallies
submitted by /u/partymsl
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