Bitcoin market on the verge of greed, but investors remain hesitant

Data shows that while the Bitcoin market is on the verge of entering “greed”, investors have been uncertain.

The Bitcoin Fear And Greed Index still shows a fearful sentiment

According to the latest weekly report from Arcane Research, BTC’s fear and greed index has now reached its highest value since April of this year.

The “Fear and Greed Index” is an indicator that tells us about the general sentiment among investors in the Bitcoin market.

The calculation uses a numerical scale that goes from zero to one hundred to represent this feeling. All values ​​below fifty mean “fear”, while those above the threshold suggest “greed”.

Values ​​towards the end of the range, i.e. above 75 and below 25, indicate “extreme fear” and “extreme greed”, respectively.

Historically, peak formations have tended to take place in the earlier periods. On the other hand, a bottom has formed in recent periods.

Now, here is a chart showing the trend of the Bitcoin Fear and Greed Index over the past year:

The value of the metric seems to have climbed up during the last few weeks | Source: Arcane Research's The Weekly Update - Week 31

As you can see in the graph above, the Bitcoin Fear and Greed Index experienced a long stretch of extreme fear between April and July.

This continuous run of the bottom in sentiment was actually the longest ever in crypto history. In mid-June, however, the metric finally began to rise.

Then around mid-July the market finally recovered from extreme fear and entered the fear zone. Since then, the mood has steadily increased.

Now the value of the indicator is 42, which is the highest since April. This means that the metric is now quite close to entering greed, but is still not there yet.

The report notes that the slow growth in the fear and greed index may indicate that Bitcoin investors are still hesitant to declare a bear market, despite the recent rally.

This trend would mean that the market owners still have fears that the recent uptrend of the crypto will end up being short-lived.

BTC price

At the time of writing, Bitcoin’s price is hovering around $23.8k, up 2% in the last week. Over the past month, the crypto has increased by 10% in value.

The chart below shows the trend in the price of the coin over the last five days.

Looks like the value of the crypto has sharply spiked up today | Source: BTCUSD on TradingView

Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Arcane Research