Data shows that the Bitcoin trader sentiment is currently neutral, a sign that investors are indecisive about the direction of the cryptocurrency.
Bitcoin Fear & Greed Index Is Right In The Balance Right Now
The “Fear & Greed Index” is an indicator created by that tells us about the average sentiment among the traders in the Bitcoin and wider cryptocurrency markets.
This index determines the sentiment by accounting for the data of 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 runs from zero to hundred.
When the metric’s value is greater than 53, it means the investors are sharing a sentiment of greed right now. On the other hand, the indicator being under 47 suggests the dominance of fear in the sector. Naturally, the region in-between these cutoffs corresponds to a neutral mentality.
Now, here is how the latest value of the Bitcoin Fear & Greed Index has been like:
As is visible above, the indicator has a value of 50, which implies that the market sentiment is exactly in the balance at the moment. It’s also not just today that the metric has been in this zone, as it had in fact signaled a neutral market during the weekend as well.
The below chart shows how the index’s value has changed over the past month.
From the graph, it’s apparent that the Bitcoin Fear & Greed Index had slipped into the fear region during the starting few days of this month, a result of the bearish action that the market as a whole had witnessed.
The traders hadn’t become too fearful in this drop, though, as the indicator had only reached a low of 37. With the price recovery that has followed since then, the sentiment has improved to the current 50 level.
Interestingly, however, despite the month of October being popularly dubbed ‘Uptober,’ a result of BTC historically performing well in this period, the market is yet to embrace greed.
The fact that the investors are still neutral despite a bullish wave seemingly starting with the recovery would suggest the investors are currently hesitant about getting excited over the prospect of a run.
Historically, Bitcoin has tended to move opposite to the expectations of the majority, so a highly bullish sentiment has usually been a bad sign for things to come. In this view, the fact that the investors are currently not displaying hype could actually turn out to be a boon for the coin’s rally.
BTC Price
Bitcoin had broken beyond the $64,000 level earlier in the day, but the asset appears to have seen a pullback since then as it’s back at $63,600.
Featured image from Dall-E, Alternative.net, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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