Bitcoin Sentiment Index Drops to 70, Still in Extreme Greed Zone

The Bitcoin Composite Sentiment Index peaked at 88.11 on August 24 and fell to 70.05 on September 2, remaining in the extreme greed range. During the same period, the price of BTC slightly decreased from $78,680 to $77,640, with the rise in sentiment not accompanied by sustained price momentum. The extreme readings are primarily driven by the Fear and Greed Index (Z-score of +2.19σ), while the CoinGecko voting stands at only +0.34σ, indicating that participant sentiment is relatively mild and the current extreme greed is not widespread or balanced. Sentiment is cooling down but is far from normalizing. 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 momentum to confirm sentiment, and sentiment improvement needs to expand across multiple components. The main risk currently is the persistence of extreme sentiment without a corresponding increase in demand and price.

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