Bitcoin Stabilizes Over $42,000 as Crypto Fear and Greed Index Shifts to Neutral

Recently fluctuating inside the realms of “greed” and “excessive greed,” the Crypto Fear and Greed Index transitioned right into a “impartial” section on Sunday, Jan. 28, 2024. This shift coincides with bitcoin’s worth leaping barely over $42,000. In the previous week, bitcoin skilled a delicate rise, roughly 1.5%, compared to the U.S. greenback.

From Greed to Neutrality — Market Sentiment Cools

Bitcoin’s worth presently stands at $42,478 per coin, exhibiting an intraday fluctuation from $41,396 to $42,824 per unit. As of Sunday, the foremost cryptocurrency’s market capitalization barely exceeds $833 billion, coupled with a worldwide commerce quantity of $14.33 billion. In the broader $1.715 trillion crypto financial system, BTC’s dominance is marked at 48.6%.

Over the course of this weekend, the Crypto Fear and Greed Index (CFGI) hosted on different.me noticed a shift from “greed” to “impartial” between Saturday and Sunday. In the previous month, the index has persistently been within the realms of “greed” and “excessive greed.” Specifically, on Jan. 9, 2024, a surge in BTC’s worth resulted within the highest reading of “extreme greed” on the Crypto Fear and Greed Index (CFGI) since 2021.

As lately as final week, the CFGI remained within the “greed” territory, registering a rating of 56 out of 100. This sentiment continued into yesterday with a barely decrease rating of 55 out of 100, nonetheless inside the “greed” class. However, the index for Sunday, Jan. 28, 2024, recorded a rating of 54 out of 100, categorizing the day as “impartial.” The CFGI evaluates market sentiment by analyzing elements like quantity, market momentum, volatility, dominance, social media, and different developments.

On Bitstamp’s BTC/USD chart for Sunday, there was a major peak at $42,824. Post this spike, the value started a consolidation section, characterised by smaller fluctuations and diminished quantity, indicating a state of equilibrium available in the market following the current enhance within the crypto asset’s worth. Mirroring the CFGI, BTC’s oscillators and shifting averages (MAs) additionally mirror a interval of neutrality and steadiness, with merchants poised for the following important motion.

What do you consider the newest CFGI metric for bitcoin? Share your ideas and opinions about this topic within the feedback part beneath.