For the first time in nine months, the largely-substantiated Bitcoin Fear and Greed Index has moved out of “fear” and into neutral territory. On Jan. 15, the indicator reached a neutral position of 52, its highest since April 5. The move follows a 24 gain for the BTC over the once seven days.
The Bitcoin Fear and Greed Index uses “movements and sentiments from different sources” including current volatility, request initiation and volume, social media, and Google Trends data. The data from these sources is also used to produce a number to epitomize the emotional geography regarding Bitcoin and crypto requests.
The indicator comprises five orders ranging from extreme fear to extreme rapacity, the ultimate not seen since October 2021. It registered its longest-ever band of extreme fear in mid-2022, as reported by Cointelegraph. At the time of this writing, the indicator has dipped back down to 45, which puts it back into the “ fear ” order. This suggests that confidence has yet to make a full return.
Bitcoin Run Continues For 9 days
Meanwhile, Bitcoin has seen its alternate-longest streak of earnings in history, with a 12- day run this month. The asset has gained 28 since the morning of this time, wiping out all losses in the crash that followed the FTX collapse in early November 2022.
The massive instigation has created a large movement in specialized pointers similar as the RSI( relative strength indicator), which has hit its loftiest position for four times on the diurnal timeframes. High RSI numbers can suggest that an asset is overbought and a correction is due.
Several judges have labeled the recent move as a bull trap, but a solid weekly close has led some to believe the instigation will continue.
Overall, the Bitcoin Fear and Greed Index moving out of fear and into neutral range is a positive sign for the crypto requests. It suggests that the confidence in the asset is growing and that the bull request could be then to stay.