[Analysis] Bitcoin Investor Sentiment Turns Most Bullish in Two Years as Overheating Cools

• The rise in <a href="https://xpertsstudio.com/bitcoin-price-spikes-near-80k-as-cpi-matches-forecasts/” title=”Bitcoin Price Spikes Near $80K as CPI Matches Forecasts”>Bitcoin (BTC) has pushed investor optimism to its strongest level in the past two years, according to the analysis.
• It said Bitcoin’s Unified Sentiment Index recently climbed above 89, entering the ‘extreme greed‘ zone.
• It added that investor sentiment is returning to normal after a bout of overheating, while Bitcoin is showing signs of holding its current price range.

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Investor sentiment has surged to its most bullish level in about two years, driven by Bitcoin’s recent rally, according to an analysis.

On Sept. 12, CryptoQuant contributor Darkfost wrote on X that Bitcoin’s latest advance had triggered the strongest investor optimism seen in the past two years. A similar level of bullish sentiment was last seen in March 2024.

According to the chart, Bitcoin’s Unified Sentiment Index recently climbed above 89, entering the “extreme greed” zone. The index aggregates measures including the Fear and Greed Index and reflects market sentiment on a scale from minus 100 to 100. The higher the reading, the stronger investor optimism is.

The index rose quickly as Bitcoin recently jumped from the $60,000 range to near $80,000. It has now climbed to a level similar to March 2024, when Bitcoin broke above $70,000.

Excessively positive or negative sentiment often signals a turning point in the market, Darkfost wrote.

He added that investor sentiment is returning to normal after a bout of overheating. Bitcoin is also showing signs of trying to hold its current price range.

Source: en.bloomingbit.io