Cryptocurrency market sentiment is soaring, greed index skyrockets

Recently, the cryptocurrency market has been bustling, especially with the price fluctuations of BTC, which are quite alarming. The cryptocurrency fear and greed index has reached an 'extreme greed' level, as everyone is filled with anticipation for BTC to break above $100,000.

The rebound in the retail market has also caused some price fluctuations in BTC, but overall, market interest remains high. The FGI index has sent out the 'extreme greed' signal for the fifth time since 2021, and each time this happens, it indicates that BTC may soon reach a temporary peak.

History tends to repeat itself, as in early 2024, when BTC's price surged above $73,000, the FGI was also in an 'extreme greed' state. In 2021, similar signals appeared, and BTC's price first reached a local peak before climbing to a cycle high.

However, will history repeat itself this time with a price pullback? The bullish sentiment in the options market does not think so; at least, they are optimistic until BTC surpasses $100,000.

Looking at the positions of those big players, they have sold put options at $75,000 and $85,000 while increasing call options at $95,000 to $110,000, clearly bullish on BTC. For example, data from Deribit shows that they not only bought call options in advance but also sold put options, demonstrating full confidence in BTC's rise.

Moreover, these big players have set potential targets from December to early 2025 at $95,000 to $110,000. Similar price targets have also been drawn on BTC's two-week chart, indicating they are preparing for a significant move.

However, the return of retail stocks to the market is a dangerous signal, often a precursor to local or cyclical peaks. Because those big whales always take this opportunity to withdraw liquidity.

Although a price correction may occur, it does not mean a bear market is coming. The current FOMO sentiment is still far from enough, so we may see some adjustments, but this does not signify the start of a bear market.

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