Bitcoin’s Fear and Greed Index score hit 52 over the weekend, hitting neutral territory for the first time in three quarters.
Bitcoin’s much-touted fear and greed index moved into neutral territory over the weekend after months of fear.

On January 15, the index reached a neutral level of 52, the highest level since April 5, 2022. The move follows a 24% gain for Bitcoin (BTC) over the past seven days.

The market sentiment tracker hit a nine-year low in June 2022. After that, it’s between 20 and 30 in the “intense fear” category. And, as Cointelegraph reported, it saw its longest scare in mid-2022.

The Fear and Greed Index uses “movements and sentiments from a variety of sources,” including current volatility, market momentum, volume, social media and Google Trends data.

Data from these sources is then used to create a specific number to summarize the emotional landscape for BTC and the crypto markets.

It consists of five categories ranging from extreme fear to greed, the latter of which has not been seen since October 2021.

At the time of writing, the index has dipped back down to 45, which puts it back in the “fear” category, indicating that confidence has yet to fully recover.

Meanwhile, BTC recorded its second-longest winning streak in history this month with a 12-day run. The asset is up 28% year-to-date, erasing all losses in the decline that followed the FTX crash in early November 2022.

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This massive momentum has created a massive move in technical indicators such as the RSI (Relative Strength Index), which has hit four-year highs on daily time frames.

High RSI readings may indicate that the asset is overbought and a correction is due.

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Many analysts labeled the recent move a bull trap, but a strong weekly close led some to believe the momentum would continue.

Professional trader and charting guru Peter Brand summed it up on January 16, tweeting:

“Any fool can make wild guesses about the market, so here’s my hat prediction. In reality, no one has any idea what any market will do. $BTC.”
According to CoinGecko, Bitcoin was trading at $21,165, up 2.2% at the time of writing.

Source: CoinTelegraph