Data presented by Stock Apps indicates that the crypto Fear and Greed Index has grown by 119.51% on a Year-Over-Year basis. As of 9 November, the index was at 90 points representing an all-time high in the past year. For the Crypto Fear and Greed Index, the value of zero translates to ‘Extreme Fear’ while the value of 100 represents ‘Extreme Greed.
Bitcoin staring at possible correction
From the weekly crypto Fear and Greed Index, as of November 2nd, the index was 71, a slight drop from 76 recorded the previous week. The weekly index hit its lowest mark in 2020 on March 22 at 11 points.
The research also reviewed the historical values where the current 90 point represents extreme greed. The extreme greed was also present on 8 November, with the index standing at 82 points. Last month, the greed was neutral, with the index at 53 points.
The research attempted to interpret the meaning of the current extreme greed levels. According to the research report, “From the data, the Bitcoin Fear and Greed Index has remained definitively skewed toward greed. However, it is not certain when the fear will start creeping in.
“It is worth mentioning that Bitcoin may be on the verge of a deep correction as the index has reached a territory of extreme greed. Historically, the index reached these levels back December 2017 and January 2019. It was later followed by a massive collapse and a depressing crypto season, which lasted for about a year.”
The extreme greed levels come after Bitcoin hit a yearly high of $16,000.