Key Points
- The Bitcoin fear and greed index has shifted to a neutral score of 48, indicating a balanced market sentiment.
- Bitcoin has broken past its 200-day moving average, currently trading around $64,850 after a 3% increase.
The fear and greed index for Bitcoin, a tool used to measure market sentiment, has recently moved to a neutral score of 48. This suggests that the market’s emotional response is now balanced, following a period of extreme fear and greed.
Bitcoin Fear and Greed Index Becomes Neutral
Data from Glassnode reveals that the Bitcoin fear and greed index was 48 at the time of writing, indicating a neutral sentiment in the market. This change signifies a shift from the previous high levels of fear and greed that were observed following recent price changes. The index, which measures market sentiment based on factors such as volatility, volume, and social media trends, suggests that traders are now adopting a more cautious stance following a period of intense market activity.
Earlier in the week, on October 11th, the index had dropped to 32, reflecting a state of fear among traders. This was despite Bitcoin’s price increasing to approximately $62,000. This cautious sentiment likely resulted from earlier price drops.
Bitcoin’s Price Movement
Analysis of Bitcoin’s price trend shows that the decline in the Bitcoin fear and greed index on October 11th was a response to previous price movements. Prior to the price increase, Bitcoin had experienced a series of drops, reducing its value to around $60,000. This was below its 50-day moving average, which served as a key support level.
However, the market rebounded on October 11th, with Bitcoin experiencing a 3% increase that brought its price back up to $62,500. This pushed it above the 50-day moving average. Despite this, the price remained below its 200-day moving average, a stronger resistance level.
As of now, Bitcoin is trading at approximately $64,850, representing another 3% gain. This upward trend has enabled Bitcoin to break past the 200-day moving average, which had previously acted as resistance around the $63,000 price mark.
The combination of these price movements and the neutral sentiment on the Bitcoin fear and greed index suggests a state of cautious optimism in the market.
Stable Number of Active Addresses
While the Bitcoin fear and greed index reflects a neutral sentiment, the number of active addresses has remained remarkably stable. Santiment data shows that the seven-day average of active addresses has stayed consistent, with around 3.5 million active addresses.
Currently, there are approximately 3.52 million active addresses, indicating continued engagement with the network. This steady number of active addresses suggests ongoing interest from long-term holders, which could serve as a foundation for future price increases.
Despite the changing sentiment, the stability in network activity may be a sign that Bitcoin’s long-term outlook remains positive.