Bitcoin Tops $80.000 But Extreme Greed Prompts Fresh Warning

Bitcoin is extending its strong recovery, breaking through the $80.000 mark. The price is currently around $80.141,20, up 4.20% over the past 24 hours. Earlier this morning, BTC briefly touched $81.000. Over the last seven days, gains have reached 24.10%. Sentiment is also shifting rapidly. The Crypto Fear and Greed Index now stands at 83, placing it in Extreme Greed territory. That reflects how much optimism has returned, but it also brings warnings as Bitcoin trades around a key price zone.

Bitcoin on track for strongest month since 2024

August is shaping up to be an exceptionally strong month for Bitcoin. Data shared by Coinglass shows that BTC has risen by around 26.9% this month, putting it on course for its best month since 2024.

The contrast with June is stark. Bitcoin fell 20.48% that month. In July, the price turned cautiously higher with a gain of 7.36%, before the rally accelerated sharply in August.

With Bitcoin at $80.141,20, its total market capitalisation now stands at roughly $1.61 trillion. Trading volume over the past 24 hours has come in at more than $56.5 billion.

The rally has not been without considerable volatility. Crypto trader Daan Crypto Trades notes that large positions are being liquidated on both sides of the market. Traders using significant leverage in particular can quickly be forced out of their positions on relatively small price movements.

Over a 24-hour period, the market data shows roughly $686 million in liquidations. Of that total, about $458 million were short positions and around $228 million were long positions. This highlights how heavily traders betting on a decline have been hit by the recent surge.

Fear and Greed Index reaches 83

It is not only the Bitcoin price that is changing quickly. Sentiment has also swung fully in a short space of time. The CMC Crypto Fear and Greed Index now stands at 83, which places it in the Extreme Greed category.

A week earlier, the index was at 41, and a month ago it sat at 36. The market has therefore moved from caution to strong optimism in a short period.

A high Fear and Greed Index does not in itself mean Bitcoin must fall immediately. During strong rallies, the index can remain in Extreme Greed territory for an extended period while prices continue to climb. It does, however, indicate that optimism is now widespread and that more traders are willing to take on risk.

High leverage leaves market vulnerable

It is the combination of Extreme Greed and high leverage that makes the next price move particularly interesting. Recent trading data shows that corrections of just a few percent are enough to liquidate hundreds of millions of dollars in positions.

For now, Bitcoin has momentum on its side. The price is above $80.000, August has so far delivered a return of around 26.9%, and short sellers remain under pressure. At the same time, the Fear and Greed Index is at 83. After such a rapid rise, the key question is whether buyers can continue to support the price around $80.000 when volatility picks up again.