The Bitcoin price has once again pushed above the $100,000 level after three consecutive days of price increases. Particularly, Bitcoin\u2019s return above $100,000 comes on the back of a 12.5% increase after it bounced off the $90,000 support level on Monday, January 13.\u00a0<\/p>\n
As expected, this positive momentum with Bitcoin has flowed into other cryptocurrencies. Major altcoins have mirrored Bitcoin\u2019s surge, contributing to a notable increase in the overall cryptocurrency market capitalization A byproduct of this crypto market cap increase has been a simultaneous movement in the Crypto Fear and Greed Index, which is now moving to the Extreme Greed threshold<\/a>.<\/p>\n The Crypto Fear And Greed Index<\/a> is a popular index that measures market sentiment on a scale of 0 to 100. The scale is classified from the lower end of extreme fear up to the higher end of extreme greed and a neutral zone in the middle. Periods of extreme fear are characterized by oversold conditions<\/a> and bearish market sentiment, often presenting buying opportunities. <\/a><\/p>\n On the other hand, when greed dominates, it often signals overbought conditions.<\/a> It also opens up a possibility that a correction or crash might be close, especially if there is a quick switch from neutral to extreme greed.<\/p>\n The entire crypto market cap has witnessed steady inflows this week. Data from CoinMarketCap shows that the total cryptocurrency market cap began the week around $3.14 trillion. This figure has risen to $3.57 trillion at the time of writing, representing an inflow of about $430 billion in the past five days. This 13.5% jump points to increased optimism as Bitcoin and a few major altcoins are now looking to return to new highs.<\/p>\n These recent inflows into the crypto market have seen the index moving from a neutral threshold at the beginning of the week to a greed threshold at the time of writing. What\u2019s particularly striking is the speed at which sentiment has shifted. As of now, the index is nearing the extreme greed threshold, a zone that suggests the market could be entering overbought territory.<\/p>\n The market\u2019s ability to maintain its course and maintain a sentiment of greed hinges on Bitcoin\u2019s ability to maintain a price<\/a> above $100,000, given its dominant position in the market. Should the bulls succeed in defending the $100,000 mark and establishing it as a solid support level, this could mitigate the risk of extreme greed leading to overbought conditions and a subsequent downward correction.<\/p>\nFear And Greed Index Moves To Extreme Greed<\/h2>\n
Where Does The Bitcoin Price Go From Here?\n<\/h2>\n