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A BIG Reason to be suspicious of the Bitcoin rally

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The Crypto Fear & Greed Index is a sentiment measure of the crypto market.

The index is at its highest level since April 2022 and has made a tremendous rebound in just a couple of weeks in 2023.

The problem is that sentiment is a contrarian indicator. The index has pushed to a multi-month high while price has yet to forcefully push to higher highs. In fact, the price is still considerably lower now than in April 2022.

The drastic turn towards bullish sentiment indicates to me this rally in Bitcoin is likely temporary. A flush out to retest the lows would re-ignite bearish sentiment and possibly a more meaningful low.

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