Bitcoin's Tight Ride Continues While Fear and Greed Index Reflects Undecided Sentiment

On Sunday, October 8, 2023, bitcoin prices staggered just below the $28K threshold, marking a 2.6% increase from the previous week. Currently, the Crypto Fear and Greed Index (CFGI) is at a “neutral” 50 out of 100, a stance it has held for the past week. Technical data reinforces this balanced view, showing bitcoin price movements have been in a tighter range.

A week earlier, bitcoin (BTC) was priced at $27,189 per unit. Over the past day, its value has ranged between $28,103 and $27,770. This week saw an increase in the value of bitcoin by 2.6%, and it jumped by 7.9% on a 30-day scale.

Throughout these fluctuations, the Crypto Fear and Greed Index (CFGI) has steadfastly projected a “neutral” position — not just today, but yesterday and throughout last week. In essence, the CFGI serves as a barometer, gauging the current mood of the bitcoin market. The goal? To equip traders with insight into the collective psyche of market players

The reason is that excessive fear can suppress prices excessively, while rampant greed can increase prices excessively. By utilizing current sentiment, traders can determine potential buy or sell moments. Interpreting the CFGI, one faces phases such as extreme fear, fear, neutral, greed, and extreme greed.

Being neutral or ambivalent indicates a lack of existing sentiment. This is similar to equilibrium in that neither a pessimistic downturn nor an optimistic upturn controls the market. However, neutrality does not mean market stagnation. Prices may experience ups and downs, but the index shows alignment between bullish and bearish forces.

source by : Jamie Redman

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