Data shows the Bitcoin market sentiment has closed in on the neutral territory as the cryptocurrency\u2019s price has recovered to $85,000.<\/p>\n
The \u201cFear & Greed Index<\/a>\u201d refers to an indicator created by Alternative that tells us about the average sentiment present among the investors in the Bitcoin and wider cryptocurrency markets.<\/p>\n To determine this sentiment, the index uses data on five factors: volatility, trading volume, market cap dominance, social media sentiment, and Google Trends.<\/p>\n The metric makes use of a numeric scale running from zero to hundred for representing this estimated mentality. All values above 53 correlate to a sentiment of greed, while those under 47 that to fear. The territory between these cutoffs represents a net-neutral mentality.<\/p>\n Now, here is what the current Bitcoin sentiment is like, according to the Fear & Greed Index:<\/p>\n As is visible above, the Bitcoin Fear & Greed Index has a value of 44 at the moment, which suggests the investors as a whole share a sentiment of fear. This crowd despair is only slightly dominant, though, as the metric is just three units away from the neutral zone.<\/p>\n The same wasn\u2019t the case just yesterday, however, as the indicator held a value of 34, firmly placing it in the fear region. Below is a chart that shows how the index\u2019s value has developed during the past year.<\/p>\n\n From the chart, it\u2019s apparent that the Bitcoin Fear & Greed Index was around the neutral zone in the final week of March, but the price plunge that came during the last couple of days of the month led to a rapid deterioration of sentiment.<\/p>\n At its lowest, the indicator touched the 26 mark during the plummet. This value was so deep into the fear region that it was on the entryway to a special zone called the extreme fear<\/a> (25 and under).<\/p>\n Historically, Bitcoin and other digital assets have tended to move in the direction that the crowd least expects. The probability of such a contrary move rises, and the stronger investor sentiment becomes, so extreme fear is where bottoms are likely to take place.<\/p>\n