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Data shows that the Bitcoin market sentiment is closed on the neutral territory, because the price of the cryptocurrency has been found to $ 85,000.
Bitcoin Fear & Greed Index is now close to the neutral region
The “Fear & Greed Index” refers to an indicator created by alternative that tells us about the average sentiment among investors in the Bitcoin and wider cryptocurrency markets.
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To determine this sentiment, the index uses data over five factors: volatility, trade volume, dominance of market capitalization, social media sentiment and google trends.
The metric uses a numerical scale that runs from zero to a hundred to display this estimated mentality. Correct all values above 53 with a feeling of greed, while under the 47 that fear. The territory between these cutoffs represents a net neutral mentality.
Now, here is how the current Bitcoin sentiment is, according to the Fear & Greed Index:
As is visible above, the Bitcoin Fear & Greed Index currently has a value of 44, which suggests that investors as a whole share a sense of fear. However, this crowd of despair is only somewhat dominant, because the metric is only three units removed from the neutral zone.
However, the same was not the case yesterday, because the indicator had a value of 34, which placed it firmly in the anxiety region. Below is a graph that shows how the value of the index was developed in the past year.
Looks like the metric has seen a sharp improvement compared to a few days ago | Source: Alternative
It is clear from the graph that the Bitcoin Fear & Greed Index was around the neutral zone in the last week of March, but the price fall that came in the last few days of the month led to a rapid deterioration of sentiment.
At its lowest, the indicator hit the 26 marking during the plume. This value was so deep in the anxiety area that it was on the entrance to a special zone called the extreme fear (25 and younger).
Historically, Bitcoin and other digital assets tend to move in the direction that the crowd expects the least. The chance of such an opposite movement increases and it becomes stronger investor sentiment, so extreme fear is where soils will probably take place.
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During the recent dive, the index did not go into this zone, but it did come close, and that is why the reason BTC’s prize was able to reach a local soil. Since the low point it has made some recovery and it has now broken $ 85,000.
Because the sentiment of investors is no longer strong in every direction after this recovery, the cryptocurrency can be about the same way to move in both directions.
BTC price
At the time of writing, Bitcoin acts around $ 85,000, a decrease of almost 4% in the last seven days.
Featured image of Dall-E, alternative.me, Chart van TradingView.com
Credit : www.newsbtc.com
