Analysis: Bitcoin sentiment indicator rises to a two-year high, market frenzy is cooling down

BlockBeats news, September 12: CryptoQuant analyst Darkfost stated that Bitcoin's recent rally has pushed investor sentiment to its strongest level since March 2024. Its tracked market sentiment indicator once reached above 89/100, entering the "extreme greed" zone.

The indicator combines multiple data points including the Fear and Greed Index, with a range of -100 to +100, corresponding to extreme fear and extreme greed, respectively. Darkfost pointed out that when market sentiment is extremely optimistic or pessimistic, it often may serve as a signal of a trend turning point.

Currently, as the previous market frenzy gradually fades, the sentiment indicator is falling back to more normal levels, while Bitcoin is still struggling to hold its current price range.