The highly-referenced Bitcoin Concern and Greed Index moved into impartial territory over the weekend following a number of months of worry.
On Jan. 15, the index reached a impartial degree of 52, its highest since April 5. The transfer follows a 24% acquire for the BTC over the previous seven days.
The market sentiment tracker hit a multi-year low of 9 in June 2022. Since then it has been hovering between 20 and 30 within the “Excessive Concern” class. Moreover, it registered its longest-ever streak of maximum worry in mid-2022, as reported by Cointelegraph.
The worry and greed index makes use of “motions and sentiments from completely different sources” together with present volatility, market momentum and quantity, social media and Google Developments knowledge, amongst others.
Collectively, knowledge from these sources is used to create a simple quantity to summarize the emotional state relating to Bitcoin and crypto markets.
It consists of 5 classes starting from excessive worry to excessive greed, the latter not been seen since October 2021.
As on the time of writing, the index has dipped again right down to 45, which places it again into the “Concern” class, suggesting that confidence has but to make a full return.
Bitcoin Concern and Greed Index is 45. Impartial
Present worth: $20,879 pic.twitter.com/lnj3pd73XL— Bitcoin Concern and Greed Index (@BitcoinFear) January 16, 2023
In the meantime, Bitcoin has seen its second-longest streak of positive factors in historical past with a 12-day run this month. The asset has gained 28% because the starting of this 12 months, wiping out all losses within the crash that adopted the FTX collapse in early November.
The huge momentum has created a big motion in technical indicators such because the RSI (relative power index) which has hit its highest degree for 4 years on the each day timeframe.
Excessive RSI figures can counsel that an asset is overbought and a correction is due.
Highest RSI ranges on Day by day $BTC chart for 4 years.
Every of the prior 3 touches of the 90 degree responded as follows:
Contact 1: BTC continued +18% larger earlier than correcting -12%
Contact 2: BTC continued +16% larger earlier than correcting -21%
Contact 3: No BTC acquire and -31% correction pic.twitter.com/swQSLqATIi
— Chilly Blooded Shillver (@ColdBloodShill) January 15, 2023
Associated: Bitcoin fails to persuade that backside is in with $12K ‘nonetheless seemingly’
A number of analysts have labeled the current transfer as a bull lure however a strong weekly shut has led some to consider the momentum will proceed.
$BTC Weekly
You might not dream up a extra bullish weekly candle. pic.twitter.com/fv66u76ujV
— The Wolf Of All Streets (@scottmelker) January 15, 2023
Skilled dealer and chart guru Peter Brandt summed it up on Jan. 16, tweeting:
“Any fool could make wild guesses about markets, so right here is my dunce-hat prediction. In actuality, no one has a clue what any given market will do. $BTC.”
Bitcoin was buying and selling up 2.2% on the day at $21,1652 on the time of writing, in response to CoinGecko.
