The fear and greed index of Bitcoin (Fear & Greed) in recent days has now reached the neutral range after several months of stability in fear mode. This index reached the level of 52 on January 15, 2023 (25 January 1401), which is its highest score since April 5, 2022. This move took place after a 24% increase in the price of the king of cryptocurrencies in the last 7 days.
In June 2022, the market sentiment index reached its lowest level of 9 in recent years. Since then, this measure has been fluctuating in the area of extreme fear, i.e. between 20 and 30. to report CointelegraphIn fact, this period is considered to be the longest time when the mentioned index always remained within the range of constant fear.
The Fear and Greed indicator uses movements and sentiments from various sources including current volatility, market movement and volume, social media and Google Trends data. By combining the mentioned sources, this measure provides a simple number to summarize the emotional state of traders in the cryptocurrency market.
Fear and greed have five areas, which include extreme fear to extreme greed. Moreover, the index has not been in the extreme greed zone since October 2021. At the time of writing, the Fear and Greed score has dropped to 45, which puts it in the fear range. This means that traders are still not fully confident in the upward trend of the cryptocurrency market.