Bitcoin’s market steps back from ‘extreme greed’ – A positive sign?

• Bitcoin exited the ‘excessive greed’ zone and will support sustainable progress
• MVRV and Pi Cycle Prime indicators revealed that BTC nonetheless had room for upside

Bitcoin’s [BTC] market sentiment has exited the “excessive greed” zone for the primary time because the “Trump pump” commerce started in November. This could provide BTC much-needed room to develop.  

In accordance with the pseudonymous on-chain analyst Dark Fost, the “excessive greed” section marked an overheated market and a possible pullback. In accordance with Fost, that is what led to the cryptocurrency’s decline from $108k to just about 90k.  

Supply: Alphractal

A set-up for a sustained BTC rally?

Moreover, new market curiosity in Bitcoin, as tracked by Google Traits, dropped considerably because the asset declined beneath the $100k milestone.

Traditionally, a surge throughout Google Traits is all the time related to euphoria and potential market corrections or tops. 

Supply: CryptoQuant

Taken collectively, Darkish Fost famous that the aforementioned tendencies imply that BTC has extra room for progress within the close to time period. He said, 

“General sentiment stays constructive, but curiosity from potential newcomers stays comparatively low, it could result in the continuation of the bullish section within the mid-term.”

His commentary was echoed by the True MVRV (Market Worth to Realized Worth) – A metric used to gauge whether or not BTC is overvalued and to trace the market cycle. 

Supply: CryptoQuant

The metric precisely pinned earlier native and market cycle tops. Actually, the 2024 March and December tops had been triggered when the metric tapped 2. Generally, a surge to 4 marked a cycle high. 

On the time of writing, the metric had retreated to 1.7 and was removed from 4, suggesting that BTC’s cycle high wasn’t shut. 

One other cycle high indicator, the Pi Cycle high, was removed from triggering this market peak. The metric flagged earlier market peaks when the 111-day shifting common crossed the modified 350-day shifting common and cycle.  

Learn Bitcoin [BTC] Value Prediction 2025-2026

Supply: Bitbo

In abstract, BTC’s retreat from “excessive greed” will be seen as a welcome aid for prolonged and sustainable progress within the mid-term. The potential for upside was additional illustrated by key market cycle high indicators that had been but to set off a probable peak for the cryptocurrency.