In today’s analysis, BeInCrypto takes a look at the famous Fear and Greed Index, which has returned to neutral levels after 9 months. The end of a long period of extremely negative market sentiment is another argument for the completion of the downward cycle in the cryptocurrency market.
The Fear and Greed Index was in a range of fear (orange, 26-45) and extreme fear (red, 0-25) for the vast majority of 2022. The previous day when the index was above the 50 level (blue line) was April 5. At that time, the Bitcoin price was at $45,500.
Then a steep decline began in the BTC price and the correlated chart of the Fear and Greed Index. The index fell particularly sharply after the crash of the តារ៉ា (LUNA) ecosystem in May-June 2022. Meanwhile, the November FTX collapse took the index to low of 20.
Fear and Greed Index vs. Bitcoin price
Today, the index gives a reading of 51. In recent days, it has returned to neutral territory (46-54) for the first time in 9 months. The price of Bitcoin is consolidating around $21,000.
Source: https://beincrypto.com/fear-and-greed-index-hits-neutral/