Bitcoin Sentiment Hits 2-Year High — Is The Rally Nearing A Turning Point?

Bitcoin sentiment hit its strongest level since March 2024 even as the token stayed below $80,000 and spot momentum weakened.

• CryptoQuant's Unified Sentiment Index climbed above 89, according to analyst Darkfost. 
• Darkside sentiment is already cooling from extreme greed levels, which can sometimes indicate a market turning point. 
• Bitcoin spot momentum fell 30% over the past week, while spot volume for the cryptocurrency has risen nearly 10% in the last 24 hours. 

Bitcoin's (BTC) rally is hitting a warning sign where investors have reached its most euphoric level since March 2024, as spot demand begins to wane and macro pressure mounts. The market sentiment index has already started cooling after crossing 89 on a scale of -100 to +100, prompting questions on whether Bitcoin is approaching another major turning point, said CryptoQuant analyst Darkfrost on Saturday.

Darkfost shared the reading on Friday, where he pointed to CryptoQuant's unified sentiment index, which climbed above 89. The index runs on a scale of -100 to +100, meaning a reading above 89 sits deep in what the chart labels as "extreme greed." 

Sentiment Index Hit Extremes  

The last time the index was this hot was in March of 2024, Darkfost added. He also said that these measurements “offer little insight” when the market is down. They tend to spend a lot of time in negative territory. They are worth watching when the trend turns, he said.