The market of Bitcoin also saw a downside action in price in a shorter time. This week Bitcoin saw a tight range trading with sudden volatility spikes affecting smaller cryptos.
Momentum looks like favoring the bulls. Ethereum, Terra, and Solana keep their profits whereas Bitcoin hints at more lows. The price of Solana recorded a 22% gain and which makes it the best performing digital asset in the top 10 cryptocurrencies. According to a recent report, cryptocurrency market participants are at several crossroads. Maybe it’s still safe to invest bitcoin despite the Fear & Greed index is now on neutral ground after witnessing a big spike.
Since last December, participants have been leaning a lot to the fearful side with two different times when the index was standing below Extreme Fear. A price reversal is signaled by sudden moves into either extreme.
The cryptocurrency market saw a huge fluctuation in the last few weeks. But with the rally in the last week, it has landed in greed territory finally. Yet as there was a slowing down of the rally and the correction in the market started, sentiment has begun to move again in the negative. It caused the reversing of the Fear & Greed Index out of greed territory. It has finally ended in neutral. Currently, the market is at standstill and is waiting for the upcoming movie.
The index is neutral
- This index assists in mapping out how crypto investors feel towards the market of cryptocurrency.
- Now it is not good or bad which saw the index languish in neutral territory.
- It is vital to note that sentiment got driven into greed.
- This is because Bitcoin made its way to $47,000.
- However now most of such positive sentiment is washed away after a slight reduction was made by Bitcoin and it came back to the region of $46,000.
- With the decline of Bitcoin, the entire market naturally took a tumble with it. Thus the total market cap was inevitably down to $2 trillion.
- But the market started to recover again. It will explain why the index did never slip completely into the region of fear.
- The index finished in greed one week, a huge contrast to the extreme fear where the index closed last month.
- The present location of this index at 52 neutral points out that crypto investors are not having any vital moves in the crypto market.
- The buys or sells have been properly balancing out one another. Investors are never moving either way now.
- It is understandable easily provided that the crypto market had slowed down mostly to one crawl concerning momentum.
- Top cryptos such as Bitcoin or Ethereum constantly trend in a similar region and struggle to make it above the upcoming major resistance points.
- The rest of the crypto market waits to follow what the leaders of the market do. But most of the market keeps on trading in the green.
- The index gets skewed toward greed even being in the region of neutral. It may look like another bounce-off point for the market of cryptocurrency.
- But the index may be back in greed soon.
Some factors playing in crypto greedy’s favor
- The cryptocurrency market could keep on beating the biggest crypto. But its transient performance will affect the market of an altcoin.
- The high measure of requests recommends drawbacks, as referenced.
- However, there are bullish factors at present affecting everything.
- As indicated by an expert at Bitbank, Yuya Hasegawa, Bitcoin’s price has profited from the UK Treasury declaration.
- The financial establishment is by all accounts warming up to cryptocurrency as it intends to embrace NFT and stablecoins to further develop its system of payment.
- In such a sense, the previous EU member alludes to a more amicable stand toward cryptos.
- Assuming the new regulation of Europe on digital assets turns antagonistic, as it is by all accounts, the U.K. could turn into the locale’s choice to keep up with its activities.
- Likewise, the cryptocurrency market is by all accounts profiting from alleviation in tech stock organizations’ costs.
- These organizations were energized, as the investigator noted after Elon Musk reported his obtaining of a 10% stake at Twitter.
Conclusion
At last, Hasegawa accepted that the Bitcoin Miami Conference could be offering Bitcoin and the cryptocurrency market some momentary help. The event could see significant bullish declarations like a year ago.
