For the first time since May 12, the BTC index of fear and greed is neutral
2 min readFor the first time since May 12, the index of fear and greed in the neutral zone is known. Before that, he was in a long state of fear or extreme fear.
The BTC index of fear and greed is neutral
Of course, the cryptocurrency market (as well as other markets) is particularly emotional. Whenever prices rise, people tend to be greedy and vice versa: when markets start to fall, they get scared. Market sentiment is an incredibly important thing to watch out for and be aware of when making investments or trading decisions.
One of the tools that measures the current sentiment of the cryptocurrency market is the index of fear and greed. It measures data from a variety of sources, including volatility, market momentum and volume, social media, surveys, dominance and trends.
At the time of writing, the index is in a neutral state, which has not been the case since May 12 this year. Since that date, sentiment has been dominated by either fear or extreme fear, which can be explained by falling prices, overall stagnation and indecision.
What does this mean for the price of BTC?
The index of fear and greed that we examine in this particular report measures sentiment only for BTC, and not the rest of the cryptocurrency market.
With this in mind, sentiment is currently neutral, which is a sign of indecision. In other words, the index shows that investors are still looking for a clear direction. BTC still faces serious resistance at $ 40,500.
As for the index itself, when it is in a state of extreme fear, it usually signals a good buying opportunity, and when it is in a state of extreme greed, it is usually time to sell. However, when it is neutral, it is probably best to wait for confirmation of the direction.
