The data shows that the bitcoin Fear & Greed index has not yet reached an extreme value. Here's what this could mean for the btc price recovery.
bitcoin Fear and Greed Index Sits at 75 Right Now
The “Fear and Greed Index” refers to an indicator created by x/wzPJE0yB/” target=”_blank” rel=”noopener nofollow”>Alternative That tells us about the average sentiment present among investors in bitcoin and the broader cryptocurrency markets.
This index bases its estimation on the following five factors: volatility, trading volume, social media sentiment, market capitalization dominance, and Google Trends. The indicator represents sentiment calculated as a score between zero and one hundred.
When the metric has a value below 47, it means that investors as a whole share a feeling of fear. On the other hand, being over 53 years old implies the presence of greed in the market. All values that fall between these two limits correspond to a neutral mentality in general.
Now, here is what the latest value of the bitcoin Fear & Greed Index looks like:
<img data-recalc-dims="1" decoding="async" class="alignnone size-medium wp-image-371514 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2025/01/Bitcoin-Breaks-Above-104000-But-Enthusiasm-Isn39t-High-Yet-Bullish.png" alt="bitcoin greed” width=”364″ height=”329″/>
Looks like the metric is at a value of 75 at the moment | Source: <a target="_blank" href="https://alternative.me/crypto/fear-and-greed-index/" target="_blank" rel="noopener nofollow">Alternative
As seen above, traders in the sector currently have a greedy feeling as the index sits at 75. This greedy mentality is also quite strong, in fact, so strong that it is right on the edge of a special zone known as the extreme. greed.
Extreme greed occurs when the indicator exceeds this 75 level. There is also a similar region for the fear side, called extreme fear. This occurs when the metric drops below 25.
The current value is a notable improvement compared to a few days ago, but is unchanged from yesterday. This is interesting as the cryptocurrency has only continued its recovery over the past day.
The chart below shows a record of the bitcoin Fear & Greed Index values over the past year.
<img data-recalc-dims="1" loading="lazy" decoding="async" class="alignnone wp-image-371515 size-large aligncenter" src="https://technicalterrence.com/wp-content/uploads/2025/01/1737223889_849_Bitcoin-Breaks-Above-104000-But-Enthusiasm-Isn39t-High-Yet-Bullish.png" alt="bitcoin Fear and Greed Index” width=”980″ height=”463″ srcset=”https://bitcoinist.com/wp-content/uploads/2025/01/chart_8c52f5.png?w=1126 1126w, https://bitcoinist.com/wp-content/uploads/2025/01/chart_8c52f5.png?w=640 640w, https://bitcoinist.com/wp-content/uploads/2025/01/chart_8c52f5.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2025/01/chart_8c52f5.png?w=980 980w, https://bitcoinist.com/wp-content/uploads/2025/01/chart_8c52f5.png?w=104 104w, https://bitcoinist.com/wp-content/uploads/2025/01/chart_8c52f5.png?w=83 83w, https://bitcoinist.com/wp-content/uploads/2025/01/chart_8c52f5.png?w=750 750w” sizes=”auto, (max-width: 980px) 100vw, 980px”/>
The indicator appears to have seen a rise in recent days | Source: <a target="_blank" href="https://alternative.me/crypto/fear-and-greed-index/" target="_blank" rel="noopener nofollow">Alternative
Historically, bitcoin has tended to move in a way that goes against the expectations of the majority, and the probability of an opposite move only increases the more confident the crowd becomes. Because of this, the highs and lows of the asset generally occur when the index is in the respective extreme zone.
btc has boosted its run today as the indicator's value is likely to be higher tomorrow, but the fact that the coin has been rising towards its all-time high while the index has stayed out of the extreme greed zone could be a positive sign for its sustainability.
Last month's price peak coincided with the Fear & Greed index hitting 87, while March's peaked at 88. It's possible that the next peak will occur below these levels, but they still provide some reference for when sentiment starts to lift. really warm up. .
btc Price
At the time of writing, bitcoin is trading around $104,800, up more than 11% over the past week.
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The price of the coin is fast charging toward its ATH | Source: BTCUSDT on TradingView
Featured image of Dall-E, Alternative.me, TradingView.com chart
