Key Points
- The Bitcoin fear and greed index has moved to a neutral score of 48, indicating a balanced market sentiment.
- Bitcoin has surpassed its 200-day moving average, currently trading around $64,850 after a 3% increase.
The Bitcoin fear and greed index, a measure of market sentiment, has recently moved to a neutral score of 48. This shift indicates a balanced sentiment among traders, moving away from the previous extremes of fear and greed.
Market Sentiment Stabilizes
According to data from Glassnode, the Bitcoin fear and greed index currently sits at 48, suggesting a neutral market sentiment. This shift marks a change from the previous heightened states of fear and greed that accompanied recent price swings.
The index gauges market sentiment by considering factors such as volatility, volume, and social media trends. The current neutral score suggests that traders are now adopting a more cautious, wait-and-see approach following a period of intense market movements.
Earlier in the week, the index dropped to 32, indicating a state of fear among traders. This drop coincided with a price increase for Bitcoin (BTC), which reached approximately $62,000. Despite the price increase, the market sentiment remained cautious, likely as a response to previous price declines.
Bitcoin’s Price Movements
Before the recent increase, Bitcoin had experienced a series of declines, dropping its value to around $60,000—a level below its 50-day moving average. However, the market rebounded on the 11th of October, with Bitcoin seeing a 3% increase that brought its price back to $62,500, pushing it above the 50-day moving average.
Despite this, the price remained below its 200-day moving average, a stronger resistance level. At the time of writing, Bitcoin is trading at approximately $64,850, gaining another 3%. This upward trend has allowed Bitcoin to break past the 200-day moving average, which had previously acted as resistance around the $63,000 price mark.
The combination of these price movements and the neutral sentiment on the Bitcoin fear and greed index suggests that the market is currently in a state of cautious optimism.
Despite the shifting sentiment, the number of active Bitcoin addresses has remained remarkably stable. Data from Santiment shows that the seven-day average of active addresses has stayed consistent, with around 3.5 million active addresses. This steady number of active addresses suggests ongoing interest from long-term holders, which could serve as a foundation for future price increases.
