$BTC

The sentiment in the cryptocurrency market has turned neutral, with the "Fear and Greed Index" revealing a cautious mindset among investors!

As the New Year begins, market sentiment has become more "Zen"! On January 5, 2025, the cryptocurrency "Fear and Greed Index" scored a neutral 61. This sentiment has remained stable since December 25 of last year, indicating that investors are neither too excited nor too fearful, as everyone awaits the next "big move"!

In November of last year, this index nearly reached the annual high of 92 points, ultimately hitting 87 points, which was a sign of greed! It almost broke the historical high of 92 points set in March 2024.

However, in the past week, Bitcoin's performance has been somewhat weak, with the price dropping from $99,000 to $94,000, causing the sentiment to slide from "greed" at 62 points to the current neutral position.

In simple terms, this is an indicator that ranges from 0 to 100, used to measure market sentiment:

0 points = extreme fear, the market is oversold, and investors are very scared.

100 points = extreme greed, the market is overbought, and investors are extremely excited.

Classic usage:

Extreme fear = buying opportunity

Extreme greed = high-risk point, likely to correct

For instance, the peak in November last year was a warning of "over-the-top greed". Now, the neutral level indicates that the market is watching, with no clear trend signal.

From December 25 to now, although Bitcoin's price fluctuations have recently shrunk, this "calm" is often the quiet before the storm.

If sentiment continues to shift toward "fear", it may signal an upcoming buying opportunity!

If sentiment returns to "greed", caution is warranted as the market may see a correction.

Watch for sentiment thresholds: An index below 25 or above 75 is a signal for significant movements.

Stay calm: With the current neutral sentiment, the market may be gearing up for the next wave of action, so be patient and wait for a breakout signal.

Bitcoin trend observation: If the price can regain $100,000, sentiment may warm up again; conversely, falling below $90,000 may trigger more fear.

Right now, the market is neither too fearful nor too excited, with sentiment being "stable with caution". There may not be major movements in the short term, but the "calm" itself is a signal—the market is waiting for the wind to come!