Data shows the Bitcoin Fear & Greed Index still hasn’t achieved an extreme value. Here’s what this might mean for BTC’s price recovery.

Bitcoin Fear & Greed Index Is Sitting At 75 Right Now

The “Fear & Greed Index” refers to an indicator created by Alternative that tells us in regards to the average sentiment present among the many investors within the Bitcoin and wider cryptocurrency markets.

This index bases its estimation on the next five aspects: volatility, trading volume, social media sentiment, market cap dominance, and Google Trends. The indicator represents the calculated sentiment as a rating lying between zero and hundred.

When the metric has a price under 47, it means the investors as a complete share a sentiment of fear. Then again, it being over 53 implies the presence of greed out there. All values lying between these two cutoffs correspond to an overall neutral mentality.

Now, here is how the newest value of the Bitcoin Fear & Greed Index looks:

Looks just like the metric is at a price of 75 for the time being | Source: Alternative

As is visible above, the traders within the sector currently hold a sentiment of greed because the index is sitting at 75. This greedy mentality can be quite strong, in reality so strong that it’s right on the sting of a special zone referred to as the extreme greed.

Extreme greed occurs when the indicator surpasses this 75 level. There may be the same region for the fear side as well, called the extreme fear. This one occurs when the metric falls below 25.

The current value is a notable improvement as in comparison with a number of days ago, nevertheless it’s unchanged from yesterday. That is interesting because the cryptocurrency has only continued its recovery run over the past day.

The below chart shows a record of the values of the Bitcoin Fear & Greed Index over the past yr.

The indicator appears to have seen an increase in recent days | Source: Alternative

Historically, Bitcoin has tended to maneuver in a way that goes contrary to the expectations of the bulk, with the probability of such an opposite move only rising the more sure the group becomes. For this reason, tops and bottoms within the asset have generally occurred when the index has been within the respective extreme zone.

BTC has furthered its run today because the indicator’s value is more likely to be higher tomorrow, however the undeniable fact that the coin has been rallying towards its all-time high while the index has been sitting out of the intense greed zone may very well be a positive sign for its sustainability.

The value top last month coincided with the Fear & Greed Index hitting 87, while the one in March with 88. It’s possible that the subsequent top might occur under these levels, but they still provide some reference of when the sentiment starts becoming truly heated up.

BTC Price

On the time of writing, Bitcoin is trading around $104,800, up greater than 11% over the past week.

The value of the coin is fast charging toward its ATH | Source: BTCUSDT on TradingView

Featured image from Dall-E, Alternative.me, chart from TradingView.com