Bitcoin has been particularly bullish this month, and we can see that it will continue to rise as the US government, Black Rock company, and other institutions keeps buying Bitcoin, pushing the price to an all-time high of $93,500.

The market has never been more greedy than now. As we can see from the fear and greed index, the index is above 90, indicating that it is extremely greedy, and hundreds of new players enter the game hoping to make quick cash.

One thing to remember is that when many investors are in favor of the market, then that is the time that market goes against all the expectations of those investors.

The same is true right now, as we witness people being overly greedy and investing recklessly in bitcoin. What will happen will be quite dangerous.

Let me first explain greed and fear, and how they work. When you observe the market is bullish, the grid index will continue to rise. The more the grid index rises, the greater the probability of a severe correction.

Similarly, if the fear index is declining, it indicates that investors are afraid and are deciding whether or not to invest. In such cases, the market is more likely to rise.

As I mentioned in the above paragraph, the greed index is at 90, indicating that it is exceedingly greedy. Investors are investing blindly, never thinking about whether the market will correct or not. So, in this case, what should we do?

The goal of this post is to provide a brief overview of the greed and fear index and to warn investors to the present market scenario.

When you notice the greed index rising above 70, you should be cautious about investing further or, if you do, use proper stop losses to avoid large losses.

Similarly, if the fear index falls below 30, it will be an excellent moment to invest because the market will quickly alter its trend and head up.

Extreme greed indicates that the market has overheated, that everyone is joining, and that everyone is eager to make quick money. However, the market continues to take a massive dump.

Now the question is whether this greed index will continue to rise or if a sharp correction will occur. It's important to remember that for a healthy market, a good correction is always appreciated.

According to my predictions and knowledge, Bitcoin will see a downturn, reaching $83K or $85K, which will be its next support levels. As a result, investors should exercise caution and make well-informed decisions before investing.

I hope you find this post interesting and I hope you will like it. If you like the post, please leave feedback in the comments section so that the next one will be even better. Thank you for sticking with me until the end.

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REMEMBER: We should prepare for the unexpected and hope for the best. Life may not be easy, but you must do your best and leave the rest to God.

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