The Bitcoin greed and fear index of Matrixport indicates that BTC will rise in the future.

Matrixport's Bitcoin greed and fear index predicts a future rise in BTC.

Author: Omkar Godbole, CoinDesk; Translation: Song Xue, LianGuai

Matrixport, a cryptocurrency service provider, has a good track record in marking trend reversals with its proprietary Bitcoin Greed and Fear Index, indicating a recovery in the Bitcoin (BTC) bull market.

The Greed and Fear Index measures investor sentiment, with readings above 90% indicating greed or excessive optimism, and readings below 10% indicating extreme fear or pessimism. Such indicators are widely tracked because market tops often occur with excessive optimism or greed, while market bottoms occur with fear.

The latest data shows that Matrixport’s index has recently risen from 30% to 60%, breaking out of the decline of over 90% since July.

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Markus Thielen, Director of Research and Strategy at Matrixport, said, “As the daily signal (gray) indicates upward pressure, it appears that the index has bottomed out. After four weeks of consolidation, the index is tactically bullish, and the Bitcoin price may recover its upward trend.” he said in a report to clients on Thursday.

Matrixport Bitcoin Greed and Fear Index

Note how the tops and bottoms of this index and the 21-day Simple Moving Average (SMA) of this index have historically coincided with reversals in the bullish and bearish trends of the Bitcoin price. The 21-day moving average now shows signs of bottoming out, supporting Bitcoin’s potential for another upward volatility.

Due to the volatility in the traditional market and expectations of a rate cut by the Federal Reserve early next year, Bitcoin has been performing poorly for some time, trading between $28,000 and $30,000 for over two weeks.

Some analysts believe that the decision by the U.S. Securities and Exchange Commission (SEC) on the application for a spot exchange-traded fund (ETF) is a key catalyst for price volatility.

The regulatory agency faces a deadline of August 13 to approve or reject Ark Invest’s application for a spot Bitcoin ETF. However, August 13 is a Sunday, so some analysts expect the SEC to announce its decision later on Friday.

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