Bitcoin’s latest advance has driven investor sentiment to its most optimistic level in nearly two years, according to CryptoQuant analyst Darkfost. He said a related market sentiment gauge briefly rose above 89, pushing into the “Extreme Greed” zone. The last time the indicator reached a similar level was in March 2024. Darkfost added that when market sentiment becomes overly optimistic or overly pessimistic, traders should watch for possible turning points in price action. He also noted that the gauge has started to retreat from its earlier euphoric reading and is moving back toward a more normal range, while Bitcoin is trying to hold its current level.
Bitcoin’s latest rally pushed investor sentiment to its most optimistic level in nearly two years, according to CryptoQuant analyst Darkfost, as cited by ChainCatcher.
A related market sentiment indicator briefly climbed above 89, entering the “Extreme Greed” zone. The last time it reached a comparable level was in March 2024.
Indicator eases from euphoric levels
Darkfost said potential market turning points often deserve attention when sentiment becomes excessively optimistic or pessimistic. He added that the indicator has started to pull back from its earlier euphoric level and is gradually returning to a relatively normal range.
At the same time, Bitcoin is attempting to hold its current level.
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