The Fear and Greed Index of BTC shows a top divergence when it reaches previous highs (as shown in the upper right corner of the chart), and has since retraced to a balanced level, near the lowest area touched by the Fear and Greed Index (FG Index) during this bull market, which is around 70.

If the current bullish trend that started from 66,000 points remains strong, the Fear and Greed Index is expected to experience a bottom rebound. However, once this trend ends, the FG Index may undergo a more significant decline until the market falls into extreme fear.

In the short-term timeframe (4 hours to 1 day), I tend to believe that the FG Index touching the bottom will trigger price fluctuations or rebounds. However, it is worth noting that the top divergence observed at the weekly level usually requires a longer time or greater downward space to digest, so the outlook is not very clear.

After all, the third major upward wave in this bull market was initiated after the FG Index formed a bottom divergence when the price retraced to around 52,000 points.