Summary
TLDR: The Fear and Greed Index is at extreme greed levels, similar to before the 2019-2020 Bitcoin halving. A deeper correction may be possible, with potential for a 21% price drop after halving. However, with the SEC approving Bitcoin ETFs, the market may be less volatile in the future. Each Bitcoin cycle is unique, so extreme greed may not necessarily lead to a major correction this time.
Key Points
1. The Fear and Greed Index re-entered the territory of extreme greed above 75 today, signaling a possible deeper correction in the cryptocurrency market.
2. If Bitcoin experiences a sharp decline before halving, it could retest the $20,000 region, consistent with previous price action before halving.
3. Extreme greed in the market could lead to a 21% correction in the price of BTC, potentially testing the $41,000 area, but each Bitcoin cycle runs slightly differently.