Bitcoin Fear & Greed Index Returns To Neutral As BTC Breaks $115,000

Data shows the Bitcoin Fear & Greed Index has surged back into the neutral zone after the recovery rally in the cryptocurrency’s ￰0￱ Fear & Greed Index Now Has A Value Of 51 The “Fear & Greed Index” refers to an indicator created by Alternative that measures the average sentiment present among traders in the Bitcoin and wider cryptocurrency ￰1￱ metric uses the data of the following five factors to determine the investor mentality: trading volume, market cap dominance, volatility, social media sentiment, and Google ￰2￱ index uses a numerical scale running from zero to hundred for representing this ￰3￱ values above 53 correspond to greed among the investors, while those below 47 to ￰4￱ region between the two cutoffs naturally corresponds to a net neutral ￰5￱ Reading: Nearly $360M In Crypto Shorts Squeezed As Bitcoin Recovers To $116,000 Now, here is how the current Bitcoin market sentiment is like, according to the Fear & Greed Index: As is visible above, the indicator has a value of 51, which suggests the trader sentiment is almost exactly in the balance right ￰6￱ is a notable change in market mood compared to just a few days ￰7￱ displayed in the chart, the Fear & Greed Index was inside the fear zone during the past few ￰8￱ despair among the traders was a result of the bearish price action that BTC had recently ￰9￱ one point, the indicator even fell to a low of 22, reflecting a state of “extreme fear.” This zone, which occurs below 25, corresponds to investors being the most bearish toward the ￰10￱ is a similar region for the greed side as well, called the “extreme greed,” situated above 75.

Historically, the extreme sentiments have been quite significant for Bitcoin and other cryptocurrencies, as they are where major tops and bottoms have tended to ￰11￱ relationship has been an inverse one, however, meaning extreme fear is where bottoms form, while extreme greed facilitates ￰12￱ the extreme fear low earlier in the month, BTC has been on the way up, a potential indication that the contrarian signal of the sentiment may once again be in ￰13￱ Reading: XRP Flashes TD Buy Signal: Start Of Fresh Rally? The cryptocurrency has extended its recovery in a sharp manner during the last couple of days, which may be a potential reason why the Fear & Greed Index has surged back to the neutral territory now.

Though, for now, Bitcoin traders are still undecided on whether bullish action will follow ￰14￱ now remains to be seen whether they will embrace greed, or continue to be hesitant about the ￰15￱ Price At the time of writing, Bitcoin is floating around $114,900, up 3.6% over the last seven ￰16￱ image from Dall-E, Alternative. me, chart from ￰17￱