After several months, the Bitcoin Fear and Greed Index moved out of the fear zone and into neutral territory yesterday (January 15).
According to Valx and quoted by Coin Telegraph, this index reached the neutral level of 52 yesterday, which is the highest value since April 5, 2022. This happened following a 24% increase in the price of Bitcoin (BTC) in the last seven days.
The fear and greed index reached its lowest level in several years (9) in June 2022. Since then, this indicator has fluctuated between 20 and 30 – the extreme fear range. In addition, the longest continuous trend of “extreme fear” was recorded in 2022.
The fear and greed index takes its input from various sources such as current volatility, market momentum and volume, social media and Google search engine trend data. This data is then transformed into a unique number in a process that is used to summarize the sentiment landscape of the Bitcoin and cryptocurrency markets.
This index covers five general areas – from extreme fear to extreme greed. Extreme Greed was last seen in October 2021.
At the time of writing, the index has once again entered the 45 and fear zone, indicating that confidence has not yet fully returned to the market.
Meanwhile, the purchase price of Bitcoin recorded its longest streak in history with 12 consecutive days of growth. This asset has increased in value by 28% since the beginning of this year and has reached the price range before the fall of the FTX exchange.
This value change has caused large shifts in analytical indicators such as the relative power index. Bitcoin analysis shows that the RSI has reached its highest level in the last four years.
High RSI figures can confirm that the asset in question has reached overbought and price correction is on its way.
Some analysts believe that the current growth of Bitcoin is a “bull trap”, but the continuation of this growth has convinced some that this trend will continue.
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