Key facts:
The bitcoin fear and greed index is currently 52. That is, neutral.
This reveals that investors do not show an excessive sentiment of buying or selling BTC.
Bitcoin (BTC) investors have maintained a neutral sentiment on the market during the last few days of the week. This means that they are not thinking of selling too much out of fear, nor buying too much out of greed or bullish conviction, which implies some price stability.
This is indicated by the Alternative explorer, which measures the fear and greed index of the cryptocurrency market collecting different data day by day. These are their price volatility, purchase volumes, social media comments, cryptocurrency dominance, and Google Trends trends. In this way, it analyzes the information obtained and determines the attitude of investors on a scale of 1 (extreme fear) to 100 (extreme ambition).
At the moment the index of fear and ambition of the market of the cryptocurrencieswhich is especially dominated by bitcoin, is on a scale of 52. This reveals that there is a neutral sentiment. In other words, not overly bullish or bearish, but rather that investors are calm and expectant about the next moves.
In a calm market, where there is not too much buying and not too much selling, the price tends to achieve some stability. As long as it stays neutral, there won’t be enough task force for it to rise or fall. However, the tranquility does not last in any asset, much less is a highly volatile one such as bitcoin, with which sooner or later there will be a sudden movement up or down, specialists point out.
After several days of fear, bitcoin investors are calm
The stabilized movement in the neutral line breaks with the bitcoin investment fear that prevailed for most of the last month. As seen in the chart below, the market was fearful until two weeks ago when it began to raise its expectations from an approximate average of 21 to a high of 60.
Since then, it has dropped slightly, remaining in the 50s line, which demonstrates the tranquility of the market and certain stability for the price of bitcoin. This is something that is also impacted by the volatility of its value, which has decreased as it has shown consolidation above USD 46,000.
Alternative indicates that a very low number on this metric, as it was until recently, could be a buying opportunity. This is because perhaps investors are having a very high sense of concern that can later break with an increase in expectations.
The opposite would be when the market is getting too greedy driving up your price by buying more. This can end in a correction, that is, in a price drop when the exaggerated buying force is reduced and the FOMO (fear of being left out) disarms.
CriptoNoticias reported that Likewise, the analyst of bitcoin and other markets, Carlos Maslatón, believes it., although with the difference that he prefers to do his own research on market sentiment rather than rely on a metric. He does that by listening or seeing what people say about it.
An investigation like the one carried out by Maslatón or metric tools like Alternative allow us to see in a big picture what the psychology of the bitcoin market is at a given moment. The most advisable thing is that everyone do their study in the widest possible way.