Bitcoin Greed No More: Sentiment Back At Neutral After $57,000 Plunge
01 Mai 2024 - 6:00PM
NEWSBTC
Data shows that Bitcoin sentiment has cooled off to neutral from
greed following the asset’s latest plunge to the $57,000 level.
Bitcoin Fear & Greed Index Has Returned To Neutral Levels The
“Fear & Greed Index” is an indicator created by Alternative
that shows the average sentiment among investors in the Bitcoin and
wider cryptocurrency market. This index estimates sentiment by
considering five factors: volatility, trading volume, social media
data, market cap dominance, and Google Trends. Related Reading:
Bitcoin To $92,190: Crypto Analyst Reveals Path To ATH Target The
metric uses a scale that runs from zero to 100 to represent this
average sentiment. All values under 46 suggest that investors are
fearful, while those above 54 imply a greedy market. The zone
between these two cutoffs naturally corresponds to the territory of
neutral mentality. Now, here is what the Bitcoin sentiment looks
like right now, according to the Fear & Greed Index: The value
of the metric appears to be 54 at the moment | Source: Alternative
As displayed above, the Bitcoin Fear & Greed Index is at a
value of 54, implying that investors share a neutral sentiment
currently. However, the neutrality is only just, as the metric is
right at the boundary of the greed region. This is a significant
departure from yesterday’s sentiment: 67. The chart below shows how
the indicator’s value has changed recently. The trend in the Fear
& Greed Index over the past year | Source: Alternative As the
graph shows, the Bitcoin Fear & Greed Index has been declining
recently. For most of February and March, as well as the first half
of April, the indicator was in or near a special zone called
extreme greed. The market assumes this sentiment at values above
75. As the asset price struggled recently, the mentality cooled off
from this extreme zone and entered the normal greed region. With
the latest crash in BTC, the index has seen a sharp plunge, now
exiting out of greed altogether. Historically, cryptocurrency has
tended to move against the majority’s expectations. The stronger
this expectation, the higher the probability of such a contrary
move. This expectation is considered the strongest in extreme
sentiment zones, as well as extreme fear and greed. As such, major
bottoms and tops have often occurred in these territories. Related
Reading: Bitcoin Dominance: Traders Preferring The OG To Dogecoin
& Other Altcoins The all-time high (ATH) price last month,
which continues to be the top of the rally so far, also occurred
alongside extreme values of the Bitcoin Fear & Greed Index.
With the sentiment now cooled to neutral, some investors may be
watching for a fall into fear. This is natural because a rebound
would become more probable the worse the sentiment gets now. BTC
Price During Bitcoin’s latest plunge, its price briefly slipped
below $57,000 before surging back to $57,300. Looks like the price
of the asset has registered a sharp drop over the past two days |
Source: BTCUSD on TradingView Featured image from Kanchanara on
Unsplash.com, Alternative.me, chart from TradingView.com
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