Bitcoin sees bullish gains to fall from “fear” levels

Becky |

The Bitcoin Fear and Greed Index, a model that looks at Bitcoin price, sentiment, and market fundamentals to measure how bullish or bearish Bitcoin ($BTC) is each day, has finally broken months of trading in “fear” territory.

The index reached a neutral level at 45/100 (where 0 represents “extreme fear” and 100 represents “extreme greed”). This is the highest the index has seen at a neutral level since April 2022. June 2022 saw the index reach extreme fear, the lowest point it has seen in years, of only 9/100. Since June, it has been ranging between 20 and 30 – sitting under extreme fear. The last time Bitcoin  saw extreme greed was in October 2021.

The move from “fear” to neutral comes after Bitcoin gained nearly 25% in price over the past week’s trading.

The Fear and Greed Index

The Bitcoin Fear and Greed Index takes data from a number of different metrics to plot the sentiment of Bitcoin and the cryptocurrency markets. There are are a few categories considered to dictate the market’s emotions towards Bitcoin:

  • Market volatility,
  • Market momentum and volume,
  • Social media sentiment,
  • Google Trends data and sentiment regarding search terms.

The index went to 52/100 earlier this month, but has since dipped down again. This implies that the market is not entirely certain of a bull run and confidence has yet to return.

Bitcoin price and sentiment

Currently, Bitcoin is enjoying a streak of inclines with a bullish 12-day run. Since the beginning of the year, it has seen a 28% increase; despite the major price crash that came as a result of the FTX fall. Some analysts believe that the quick increase might suggest a correction is on the way, however some others believe that market is heading into a bullish state.