$BTC market sentiment has finally shifted out of the “extreme greed” zone, a move not seen since the explosive “Trump pump” rally in November. This transition signals a much-needed cooling period, creating room for sustainable growth and a stronger foundation 🌱.$BTC
📉 Market Cooling Off:
On-chain analyst Dark Fost notes that the "extreme greed" phase historically signals an overheated
prone to corrections. This sentiment shift played a role in Bitcoin’s pullback from $108k to $90k.
📉 Falling Interest:
Adding to this, data from Google Trends shows a sharp decline in new Bitcoin-related searches as its price dipped below the critical $100k mark. In the past, spikes in online interest have often aligned with market tops and corrections, reinforcing the importance of current sentiment changes 🌐.
📊 Key Metrics Support Growth Potential:
Two leading indicators provide insight into Bitcoin's trajectory:
1️⃣ True MVRV (Market Value to Realized Value):
A powerful tool for identifying market cycle peaks.
BTC’s previous tops (March and December 2024) occurred when the MVRV hit 2, while a rise to 4 typically marks a major cycle top.
Currently, the metric is at 1.7, signaling that BTC’s cycle top is still distant and there’s significant room for upward movement 📈.
2️⃣ Pi Cycle Top Indicator:
This metric highlights market peaks when the 111-day moving average crosses the 350-day modified moving average.
At present, this indicator is far from triggering, reinforcing that Bitcoin remains well-positioned for further expansion 🌟.
💡 What’s Next for Bitcoin?
The retreat from “extreme greed” is a healthy reset, providing a solid foundation for sustainable mid-term growth. With key indicators suggesting that a cycle top is nowhere near, BTC has the potential to chart new territory 📈.
💼 Investor Insights:
This phase presents a unique opportunity for strategic positioning as the market cools and stabilizes. Stay vigilant, monitor the key metrics, and always DYOR before making investment decisions 📘.
✨ Bitcoin: A Reset for Resilience and Growth!