Analyst: Bitcoin sentiment index drops from 88 to 70, still in extreme greed zone

PANews reported on September 2 that CryptoQuant analyst Axel Adler Jr. pointed out that after Bitcoin's composite sentiment index peaked at 88.11 on August 24, it fell to 70.05 on September 2, still in the extreme greed zone. During the same period, the BTC price edged down from $78,680 to $77,640, and the rise in sentiment was not accompanied by sustained follow-through in price momentum.

Breaking it down, the extreme reading was mainly driven by the Fear and Greed Index (Z-score of +2.19 sigma), while the CoinGecko vote was only +0.34 sigma, showing that participant sentiment was relatively moderate, and the current extreme greed was not broad or balanced. Sentiment is already cooling but is far from normalized. A high sentiment index itself is not a bearish signal, but extreme optimism combined with a lack of price follow-through makes the market more sensitive to weak demand. A more sustainable positive state requires price to confirm sentiment through momentum, and sentiment improvement needs to expand across multiple components. The main risk at present is that extreme sentiment persists while demand and price growth fail to follow through.