Data shows that Bitcoin investor sentiment has worsened to neutral for the first time in July as the asset’s price has continued to endlessly consolidate.
Bitcoin Fear & Greed Index Is Now Pointing At “Neutral”
The “Fear & Greed Index” is an indicator that tells us about the general sentiment among the investors in the Bitcoin and wider cryptocurrency sector. The metric uses a scale that runs from 0-100 for representing this sentiment.
When the value of the index is lower than 46, it means that the investors are fearful right now. On the other hand, values above 54 suggest that the market is greedy at the moment. The region between these two thresholds of 46 and 54 belongs to the neutral sentiment.
Aside from these three core sentiments, there are also two special sentiments, called “extreme fear” and the “extreme greed.” The former takes place at values lower than 25, while the latter occurs above 75.
Historically, extreme sentiments have held great significance for the cryptocurrency, as the major bottoms and tops have usually formed while the market is going through extreme fear and extreme greed, respectively.
Now, here is what the current value of the Bitcoin Fear & Greed index looks like:
As displayed in the above graph, the Bitcoin fear and greed index currently has a value of 54, which means that the average investor in the cryptocurrency market holds a neutral sentiment.
Today’s value of the indicator marks a new shift in the sector, as before now, the market had been holding a mentality of greed.
Here is a chart that shows how the metric’s value has changed during the past month:
As displayed in the above graph, the Bitcoin Fear & Greed Index had been consolidating inside the greed territory during the past few weeks. The index’s values weren’t too far above the greed threshold, however, implying that the mentality wasn’t too strong.
Nonetheless, the sentiment had still continuously maintained inside the greed region. This has changed with the latest value of the metric, of course, as the market has today dropped into neutral territory for the first time since the end of last month.
This drop towards the neutral region has occurred as the price of the cryptocurrency has been consolidating without stopping during the last few weeks. Naturally, this shift reflects the indecisiveness of the current market, as the investors are unsure if a bullish or a bearish breakout will take place from here.
However, as the indicator’s value is currently still right on the edge of the greed territory, the market is slightly leaning towards a bullish mentality. It now remains to be seen if the index will re-enter the greed territory soon, or if the uncertainty in the market will only grow further.
BTC Price
At the time of writing, Bitcoin is trading around $30,200, down 1% in the last week.
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