Bitcoin Sentiment Returns Back To Neutral As BTC Breaks $114,000

Data shows the Bitcoin Fear & Greed Index has retreated into the neutral territory as the BTC price has made recovery back above $114,000.Bitcoin Fear & Greed Index Is Exactly In The Balance Right NowThe “Fear & Greed Index” refers to an indicator created by Alternative that measures the average sentiment present among traders in the Bitcoin and wider cryptocurrency markets.The index uses the data of the following five factors to determine the investor mentality: volatility, trading volume, market cap dominance, social media sentiment, and Google Trends.The metric represents the sentiment as a score lying between zero and hundred, where all values above 53 correspond to a sentiment of greed and those below 47 to one of fear. Its value being between these two thresholds implies a net neutral mentality.Besides these three regions, there are also two “extreme” zones called the extreme fear (below 25) and extreme greed (above 75). Historically, these two regions have held significance for Bitcoin and other digital assets, as tops and bottoms have occurred while the investors have held these sentiments.The relationship has been an inverse one, however, meaning extreme fear has been where bottoms have taken place, while extreme greed has facilitated top formations.Now, here is how the sentiment in the cryptocurrency sector is like at the moment, according to the Fear & Greed Index:As displayed above, the Bitcoin Fear & Greed Index has a value of 50 right now, which suggests the average trader sentiment is exactly in the balance. This is a change from how it was in the last few days, when the investors were fearful.From the chart, it’s visible that the indicator fell to a low of 28 just a few days ago, implying investor sentiment was deep in the fear zone, just shy from turning into extreme fear. The fearful mentality was a result of the crash in Bitcoin and other cryptocurrencies.Interestingly, since this peak in fear, BTC has regained footing and made some recovery. This could be an indication that the contrary effect of crowd sentiment may have once again come into play, despite the index not quite reaching extreme fear.With the market rebound, sentiment has quickly improved. But with it still being at neutral levels, the crowd is uncertain about where the asset would head next. It now remains to be seen how the investors will respond if the price recovery continues in the coming days.BTC PriceAt the time of writing, Bitcoin is floating around $114,300, up more than 3% over the last seven days.Weiter zum vollständigen Artikel bei NewsBTC Weiter zum vollständigen Artikel bei NewsBTC