Data shows while the Bitcoin market sentiment is on the verge of entering into “greed,” the investors have remained unconfident.
Bitcoin Fear And Greed Index Still Shows A Fearful Sentiment
According to the latest weekly report from Arcane Research, the BTC fear and greed index has now reached the highest value since April of this year.
The “fear and greed index” is an indicator that tells us about the general sentiment among investors in the Bitcoin market.
The metric utilizes a numeric scale that runs from zero to hundred for representing this sentiment. All values below fifty signify “fear,” while those above the threshold imply “greed.”
Values towards the end of the range, that is above 75 and below 25, denote “extreme fear” and “extreme greed,” respectively.
Historically, top formations have tended to take place during the former periods. On the other hand, bottoms have formed in the latter periods.
Now, here is a chart that shows the trend in the Bitcoin fear and greed index over the past year:
The value of the metric seems to have climbed up during the last few weeks | Source: Arcane Research's The Weekly Update - Week 31
As you can see in the above graph, the Bitcoin fear and greed index experienced a long stretch of extreme fear between April and July.
This continuous run of rock-bottom sentiment was in fact the longest ever in the history of the crypto. In mid-June, however, the metric finally started rising up.
Then around the middle of July, the market finally recovered from extreme fear and entered into the fear zone. Since then, the sentiment has been steadily going up.
Now, the value of the indicator is 42, which is the highest since April. This means that the metric is now quite close to entering into greed, but is still not there just yet.
The report notes that the slow growth in the fear and greed index could suggest Bitcoin investors are still hesitant to declare a bear market, despite the latest rally.
This trend would imply that the market holders still have fears about the recent uptrend of the crypto ending up being short-lived.
At the time of writing, Bitcoin’s price floats around $23.8k, up 2% in the past week. Over the last month, the crypto has gained 10% in value.
The below chart shows the trend in the price of the coin over the last five days.
Looks like the value of the crypto has sharply spiked up today | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Arcane Research