A widely followed crypto analyst says that one metric suggests Bitcoin (BTC) is gearing up for a massive breakout.
In a new strategy session, pseudonymous crypto trader Inmortal tells his 230,900 followers on the social media platform X that the Crypto Fear and Greed Index is flashing bullish for digital assets as it has reached “extreme fear,” a level seen during historical market collapses.
The Crypto Fear and Greed Index is a metric that gauges the fear or greed levels in the market with a reading of extreme fear indicating oversold conditions and a reading of extreme greed suggesting overbought conditions.
“Fear is at same levels we saw during Covid-19 crash and 2022 bottom. All of this while US announced a Bitcoin reserve.”
He also says that based on historic precedence market sentiment may remain in “extreme fear” anywhere from a month-and-a-half to about five months.
“Last cycle we visited extreme fear three times, and these periods lasted between 50 and 160 days.”
The analyst believes Bitcoin is repeating a similar pattern from 2024, when BTC retested a support level that erased gains from a bullish run before taking off to print new all-time highs.
“We doing this again.”
Lastly, the analyst says Ethereum (ETH) may be on the verge of a massive breakout similar to what Bitcoin did in 2020.
“I should accept that it’s all over, as others have already done. I’m not saying it will happen, but if the bull run is not finished, we should see something similar to this.”
Bitcoin is trading for $82,874 at time of writing, flat on the day. Meanwhile, ETH is trading for $1,881 at time of writing, down 3.5% in the last 24 hours.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
Credit: Source link
