Bitcoin Fear & Greed Index Returns To Neutral As BTC Breaks $115,000

The Bitcoin Fear & Greed Index has returned to the neutral zone with a value of 51. This index measures cryptocurrency market sentiment using trading volume, market cap dominance, volatility, social media sentiment, and Google Trends. A value above 53 indicates greed, while below 47 signifies fear, with the area between being neutral. Recently, the index was in the fear zone, dropping to 22, reflecting extreme bearishness due to Bitcoin's price decline. Extreme sentiments, both fear and greed, have historically preceded major market tops and bottoms. The current neutral reading suggests traders are balanced in their outlook. This shift occurred as Bitcoin experienced a recovery rally. The cryptocurrency's price has risen in the past few days, contributing to the index's movement back to neutral. Bitcoin traders are currently undecided about the market's next direction. It remains to be seen if optimism will increase or if hesitation will persist.