- Bitcoin left the zone of ‘extreme greed’ and could promote sustainable growth
- MVRV and Pi Cycle Top indicators showed that BTC still had room for upside potential
Bitcoins [BTC] Market sentiment has left the “extreme greed” zone for the first time since the Trump pump trade began in November. This could provide BTC with much-needed growth space.
So said the pseudonymous on-chain analyst Dark Fostmarked the phase of ‘extreme greed’ an overheated market and a potential pullback. According to Fost, this led to the cryptocurrency’s drop from $108,000 to almost $90,000.
Source: Alpharactal
A setup for a sustained BTC rally?
Furthermore, new market interest in Bitcoin, as tracked by Google Trends, dropped significantly when the asset fell below the $100,000 mark.
Historically, a rise in Google Trends has always been associated with euphoria and potential market corrections or tops.
Source: CryptoQuant
All things considered, Dark Fost noted that the above trends mean that BTC has more room for growth in the near term. He stated,
“Overall sentiment remains positive, but interest from potential newcomers remains relatively low. This could lead to a continuation of the bullish phase in the medium term.”
His observation was echoed by the True MVRV (Market Value to Realized Value) – a metric used to measure whether BTC is overvalued and to track the market cycle.
Source: CryptoQuant
The metric accurately reflects previous local and market cycle tops. In fact, the March and December highs of 2024 were triggered when the benchmark ticked 2. In most cases, an increase to 4 marked a cycle top.
At the time of writing, the value had fallen back to 1.7 and was far from 4, indicating that BTC’s cycle top is not yet close.
Another cycle top indicator, the Pi Cycle top, was far from the trigger for this market peak. The metric marked previous market peaks when the 111-day moving average crossed the adjusted 350-day moving average and the adjusted cycle.
Read Bitcoin [BTC] Price prediction 2025-2026
Source: Bitbo
In summary, BTC’s retreat from “extreme greed” can be seen as a welcome relief for extended and sustainable growth over the medium term. The potential for upside was further illustrated by key market cycle top indicators that have yet to trigger a likely peak for the cryptocurrency.