Data shows that bitcoin trader sentiment is currently neutral, a sign that investors are undecided about the direction of the cryptocurrency.
bitcoin Fear and Greed Index Balanced Right Now
The “Fear and Greed Index” is an indicator created by crypto/fear-and-greed-index/” target=”_blank”>Alternative That tells us about the average sentiment among traders in bitcoin and the broader cryptocurrency markets.
This index determines sentiment by taking into account data from the following five factors: trading volume, volatility, market cap dominance, social media sentiment, and Google Trends. To represent the calculated sentiment, the indicator uses a scale that goes from zero to one hundred.
When the metric value is greater than 53, it means that investors share a greedy sentiment at the moment. On the other hand, the indicator below 47 suggests the predominance of fear in the sector. Naturally, the area between these limits corresponds to a neutral mentality.
Now, this is what the latest bitcoin Fear & Greed Index value has been like:
<img class="wp-image-646780 size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/10/Bitcoin-Investors-Didn39t-Sell-Up-as-Sentiment-Remains-Neutral.png" alt="bitcoin Neutral Sentiment” />
As seen above, the indicator has a value of 50, which implies that the market sentiment is exactly in balance at the moment. It's also not just today that the metric has been in this zone, as it had in fact also signaled a neutral market over the weekend.
The following chart shows how the value of the index has changed over the last month.
<img class="wp-image-646781 size-large" src="https://technicalterrence.com/wp-content/uploads/2024/10/1728411114_873_Bitcoin-Investors-Didn39t-Sell-Up-as-Sentiment-Remains-Neutral.png" alt="bitcoin Fear and Greed Index” srcset=”https://www.newsbtc.com/wp-content/uploads/2024/10/chart.png?w=1144 1144w, https://www.newsbtc.com/wp-content/uploads/2024/10/chart.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/10/chart.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/10/chart.png?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/10/chart.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/10/chart.png?w=1140 1140w” />
From the chart, it is evident that the bitcoin Fear & Greed Index had slipped into the fear region during the early days of this month, as a result of the bearish action that the market as a whole had witnessed.
However, traders had not been too scared by this drop, as the indicator had only reached a low of 37. With the price recovery that has followed since then, sentiment has improved to the current level of 50.
Interestingly, however, despite the month of October being popularly called “Uptober”, as a result of btc's historically good performance in this period, the market has not yet embraced greed.
The fact that investors remain neutral despite a bull wave that apparently began with the rally would suggest that investors are currently hesitant to get excited about the prospect of a run.
Historically, bitcoin has tended to move against majority expectations, so very bullish sentiment is usually a bad sign for things to come. From this point of view, the fact that investors are currently not showing enthusiasm could become a blessing for the currency's rally.
btc Price
bitcoin had broken through the $64,000 level earlier in the day, but the asset appears to have seen a pullback since then as it has returned to $63,600.
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