The Crypto market has been fluctuating heavily in the past couple of weeks but with last week’s rally had finally landed into the greed territory. The rally came to a halt and the inevitable market correction started, but sentiment began to change again in the negative. This had caused the Fear & Greed Index to reverse out of the greed territory, finally ending in neutral. Now the market sits still, waiting to see the next move.
Crypto Fear & Greed Index In Neutral
The crypto Fear & Greed Index helps map out how investors are feeling towards the market. The index is now in neutral, meaning it’s neither good or bad. Noting that bitcoin reached $47,000, sentiment was driven into greed. However, the majority of this positive sentiment has disappeared after it experienced a small decline and returned to the $46,000 range.
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With bitcoin’s decline, the whole market had naturally taken a tumble along with it. This resulted in the market’s total cap falling to the low $20 trillion range. The market is now recovering, and the index has not fallen into the fear zone.
The index ended last week with greed. It was a sharp contrast to the panic and fear that had characterized the past month. It is clear that the market has not seen any significant investor moves, with the index currently sitting at 52. The buys and the sells have been balanced out and investors don’t seem to be moving any one way.
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Given that momentum had slowed to an absolute halt in the market, this is understandable. Bitcoin and Ethereum are trending in the same direction, but struggle to move above next important resistance points. As the market leaders lead, the rest of market follows their example.
However, since the majority of the market continues to trade in the green, the Fear & Greed is skewed towards greed despite being in the neutral territory. This looks to be another rally point for the crypto market. The index might well return to greed before the week ends.
Market cap: $2.098 Trillion | Source: Crypto Total Market Cap on TradingView.com
Featured image by Stears Business. Chart from TradingView.com