Bitcoin's Fear and Greed index hit the highest level on record

Bitcoin's Fear and Greed indicator reached extreme values on the back of the recent rally. At the time of writing, the value of the indicator is set at 84, which means that the market is "extremely greedy" about Bitcoin. 

This is the highest level on record. Moreover, the indicator has moved above 80 threshold for the first time since February 2018. In the previous week, the indicator showed 61. 

Basically, this is a dangerous signal for buyers as it means that the market is overheated and ripe for a correction. However, in practice, the FOMO (Fear Of Missing Out) might drive the prices much higher before the bulls decide to hit a pause button or pocket some profits.

"Taking a step back, with $BTC #bitcoin at new 2019 highs, don't those old highs look like a few FOMO days away? Crypto winter is over…" Fundstrat's Tom Lee wrote recently on his Twitter.

He believes that Bitcoin has the potential to reach $10,000. Once this level is broken, the real FOMO will begin.

At the time of writing, BTC/USD is changing hands at $9,187, mostly unchanged since this time on Monday. The first digital currency topped at $9,474 on Monday after a steady growth for six consecutive days.