BTCrise keeps going up, and the Fear & Greed Index is skyrocketing! Analysts warn of a possible terror pullback based on the graph.

BTC Greed Index Hits Nearly 7-Month High

According to Cointelegraph, BTC continued its upward trend over the weekend, surging to a high of over $81,700. The Cryptocurrency Fear and Greed Index also soared to 78, hitting its highest level in nearly 7 months, indicating that market sentiment is in the 'extreme greed' zone.

The Cryptocurrency Fear & Greed Index is one of the main indicators to judge market sentiment, mainly calculated based on market volatility (25%), volume (25%), social media sentiment (15%), Bitcoin dominance (10%), and trends (10%) factors.

Since October 31st, the Cryptocurrency Fear and Greed Index has been hovering in the 'Extreme Greed' zone (75-100 points), with fluctuations between 70 and 78 points in the past week.

Source: Alternative.me The Cryptocurrency Fear and Greed Index surged to 78, reaching a nearly seven-month high.

BTC Google Search Trends Also Soaring

With BTC hitting a historical high, the keyword search volume for 'Bitcoin' on Google has also risen significantly, indicating an increasing interest from retail investors. However, compared to the historical peak at the end of May 2021, the current search popularity is only at a relative level of 51/100.

Image Source: GoogleGoogle Trend Bitcoin keyword 'Bitcoin' search popularity soaring

Analysts believe that the main driving force behind this round of gains is the change in the US political situation. The election of Trump, who supports Crypto Assets, and the victory of several encryption-friendly legislators, have injected strong momentum into the market.

Investors also expect that if Trump fulfills his election promises and replaces the chairman of the US Securities and Exchange Commission (SEC), the regulatory environment may become more relaxed.

Some analysts warn of a pullback, even seeing 50,000?

However, not all analysts are optimistic about the current trend. Foreign crypto world celebrity WhalePanda recently warned that the sharp rise in low liquidity environments on weekends will almost always "completely reverse."

Keith Allen, co-founder of Material Indicators, also stressed that even though BTC is in a new phase of price discovery, the market still needs "some pullback", and he follows the closing conditions of BTC's weekly and monthly lines.

Image Source: Twitter co-founder Keith Allen emphasizes that BTC needs a pullback, according to Material Indicators.

CoinGlass's BTC liquidation map (Liquidation Heatmap) shows that, from a weekly perspective, if there is a pullback in the future, there will be significant buying interest around $75,000 to $75,500.

Well-known trader and analyst Credible Crypto is more pessimistic about the short-term trend. He expects BTC to possibly hit a short-term peak and may experience a significant pullback, with a target price potentially even below $50,000.

Image source: CoinGlass BTC clearing map

Zhao Changpeng (CZ) also warned: please pay attention to risk management

As Bit continues to set new historical highs, CZ, the former CEO of Binance, also called on investors to pay attention to risk management.

He said that the market will definitely experience multiple fluctuations in the future, and investors need to ensure that they can bear such fluctuations. It is recommended to control greed and not to put all eggs in one basket. A gradual investment strategy should be adopted.

Image source: CZ, the founder and former CEO of Binance, reminds of risk management.

According to CoinGecko data, the price of Bitcoin is $80,798 at the time of writing. Although the market sentiment is extremely optimistic, analysts, traders, and crypto world figures have warned investors to remain cautious about potential pullback risks.

[Disclaimer] The market is risky and investment should be cautious. This article does not constitute investment advice. Users should consider whether any opinions, perspectives, or conclusions in this article are suitable for their specific circumstances. Investing based on this is at your own risk.