Bitcoin sentiment cools after hitting 89, signaling possible market pivot

Bitcoin market sentiment had entered its strongest bullish phase in two years since March 2024, according to a CoinNess analysis of CryptoQuant data. A composite sentiment index based on major fear-and-greed indicators at one point reached 89, putting the market in a state of extreme greed. The index moves between -100 and +100, and past cases show such extreme readings have acted as signals of major market pivot points. After passing through a euphoric phase, Bitcoin is now battling to hold current price levels as sentiment indicators ease back toward a normal range. With the market having shifted out of a bear market and into a bullish trend, volatility in sentiment gauges is likely to be a key variable for short-term direction.