The broadly adopted Bitcoin Concern and Greed Index moved into impartial territory over the weekend after a number of months of worry.
On Jan. 15, the index hit a impartial level of 52, its highest level since April 5. The transfer follows a 24% surge for BTC over the previous seven days.
The Market Sentiment Tracker hit a multi-year low of 9 in June 2022. It has since fluctuated between 20 and 30 within the Excessive Concern class. Moreover, it skilled its longest-ever episode of utmost worry in mid-2022, Cointelegraph reported.
The Concern and Greed Index makes use of “actions and sentiment from quite a lot of sources” together with however not restricted to latest volatility, market dynamics and quantity, social media knowledge and Google Trends.
Collectively, knowledge from these sources are used to create a easy quantity to summarize the emotional state concerning bitcoin and crypto markets.
It consists of 5 classes starting from excessive worry to excessive greed, the latter of which has not been seen since October 2021.
On the time of writing, the index has fallen again all the way down to 45, placing it again within the worry class, suggesting that confidence has not but totally returned.
Bitcoin Concern and Greed Index is 45. Impartial
Present worth: $20,879 pic.twitter.com/lnj3pd73XL
— Bitcoin Concern and Greed Index (@BitcoinFear) January 16, 2023
In the meantime, Bitcoin has seen its second-longest profitable streak in historical past with a 12-day run this month. The asset is up 28% for the reason that begin of this yr, erasing the entire losses from the crash that adopted FTX’s collapse in early November.
The huge momentum has generated a giant transfer in technical indicators just like the RSI (Relative Power Index), which has hit its highest level in 4 years on the each day timeframe.
Excessive RSI numbers can point out that an asset is overbought and a correction is due.
Highest RSI ranges on the $BTC each day chart in 4 years.
Every of the earlier 3 touches of level 90 responded as follows:
Contact 1: BTC continued +18% higher earlier than correcting -12%
Contact 2: BTC continued +16% higher earlier than correcting -21%
Contact 3: No BTC achieve and -31% correction pic.twitter.com/swQSLqATIi
— Chilly Blooded Shillver (@ColdBloodShill) January 15, 2023
Associated: Bitcoin fails to persuade at $12,000 “nonetheless probably” that backside is in
A number of analysts have known as the latest transfer a bull lure, however a strong weekly shut has some believing the momentum will maintain.
$BTC weekly
You could not consider a extra bullish weekly candlestick. pic.twitter.com/fv66u76ujV
— The Wolf of All Streets (@scottmelker) January 15, 2023
Skilled dealer and charting guru Peter Brandt summed it up in a tweet on Jan. 16:
“Any fool could make wild assumptions about markets, so this is my idiot’s prediction. In actuality, nobody has any concept what any explicit market will do. $BTC.”
Bitcoin is trading up 2.2% at $21,1652 on the time of writing, in accordance with CoinGecko.