Bitcoin At Decision Point As Investors Hold Neutral Sentiment
28 July 2023 - 12:00AM
NEWSBTC
Bitcoin may be at a decision point right now as investor sentiment
is exactly neutral. Which way will the market tip in the coming
days? Bitcoin Fear & Greed Index Suggests Market Is Neutral A
few days back, Bitcoin had observed a sharp plunge that had taken
the cryptocurrency’s value towards the $29,000 level. In the days
that followed, the asset had only consolidated around these
relatively low levels, but during the last 24 hours, things appear
to have changed a bit. The impetus for this latest volatility
appears to have been the US Federal Reserve (Fed) hiking
interest rates by an expected 25 bps. Shortly after the FOMC
meeting had announced this increase, Bitcoin started to surge,
giving investors hope that the coin may be traveling back toward
the $30,000 level. This new rise, however, seems to have already
run out of steam, as BTC has fallen back to lower levels. At the
time of writing, Bitcoin is trading around $29,400, down 2% in the
past week. BTC's recovery hasn't been much yet | Source: BTCUSD on
TradingView While Bitcoin has retraced from its peak during the
past day, the cryptocurrency is still up a net amount in this
period, meaning that the asset has managed to hold onto some
recovery nonetheless. Related Reading: This AMD Ryzen Bug Can
Compromise Your Crypto Wallet Keys The fact remains, though, that
the coin has been unable to keep up its upward trend, a sign that
the market is still perhaps indecisive about its direction. This is
reflected in the general investment sentiment in the space, as the
“Fear & Greed Index” shows. Looks like the needle is pointing
directly in the middle currently | Source: Alternative The Fear
& Greed index makes use of various market-related metrics (like
volatility, dominance, and volume) to judge what the most likely
sentiment of the average participant in the sector is currently.
This index has a value of 51 right now, which means that the
Bitcoin investor sentiment is almost exactly in the balance. This
lack of direction in the market isn’t a new development; the
investors have been leaning towards neutrality for a week or so
now. The trend in the Fear & Greed Index over the past year |
Source: Alternative The current neutral sentiment must not be
confused with a lack of interest in Bitcoin, however, as data from
the on-chain analytics firm Santiment shows that the share of
social media discussions related to the 100 largest assets in the
cryptocurrency sector occupied by BTC alone (the “social
dominance“) is now at a two-week high. BTC-related talks make up
for 33% of all discussions related to the top 100 coins | Source:
Santiment The traders look to have an active interest in Bitcoin at
the moment, but their collective opinion isn’t favoring any one
side. In situations like these, it’s generally hard to say which
way the cryptocurrency might go in next. Related Reading: Bitcoin
Exchange Supply Only Slips Further Despite Price Decline If this
indecisiveness in the market stays in the coming days, though, it’s
likely that BTC’s stagnation will continue further, as moves in
either direction (if any) may not be able to go on for long.
Featured image from iStock.com, charts from TradingView.com,
Alternative.me, Santiment.net
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