[Analysis] "It appears the Fear & Greed Index has peaked... August correction phase"

JOON HYOUNG LEE

Summary

Matrixport stated that the cryptocurrency Fear & Greed Index has reached its peak.
According to reports, the long-term moving average of Bitcoin is showing signs of forming a peak.
Matrixport mentioned the likelihood of entering a correction phase next month and advised investors to be prepared for a possible cooling period.

*Long-term moving average of Bitcoin and cryptocurrency Fear & Greed Index trends. Photo provided by Matrixport*

An analysis has emerged suggesting that the cryptocurrency Fear & Greed Index, which reflects market sentiment, has peaked.

Matrixport, a cryptocurrency analysis firm, announced on the 30th (local time) through its official X account that "it appears the Fear & Greed Index has reached its peak," and added, "the long-term moving average of Bitcoin (BTC) is also exhibiting signs of forming a peak." The Fear & Greed Index is an indicator reflecting market sentiment, with higher readings signaling overheated investor sentiment. Matrixport further remarked, "Historically, the rise of this indicator has coincided with strong bullish rallies in Bitcoin."

There is also speculation that the price of Bitcoin may decline starting next month. Matrixport analyzed, "We anticipate a correction phase next month," and continued, "Even though the news flow remains positive, the momentum (for a rise) has weakened, which may imply that market sentiment is getting ahead of the fundamentals." They added, "Investors should prepare for a potential cooling period."

BTC