The crypto market was hit hard during the weekend as prices from Bitcoin to altcoins fell rapidly. During this time, there was also a decline in the trading volume and momentum in the market, which was partly responsible for the losses recorded. Now, with the new week, there is still a lot of skepticism in the market as Bitcoin’s decline below $30,000 could mean that the bear market is back in full force.

One thing that highlights how investors are feeling when it comes to the market is the Crypto Fear & Greed Index. This index takes into account things such as social media sentiment, market momentum, volatility, etc, and with this, it provides a score based on a 1-100 scale.

Now, on this index, 1-25 marks extreme fear, which is when investors are very wary of the market. 26-50 is the fear territory but with less wariness from investors. 51-75 is greed, a region that shows investors are more likely to invest in the market. And finally, 76-100 is extreme greed when the euphoria is the highest in the market, usually seen in bull markets.

However, the 48-52 levels are usually reserved for the ‘neutral’ level which is where the index currently sits. At this level, investors are usually reeling from a price surge or crash, and it shows an unwillingness to make any further moves until there is a better-defined movement in the market.

If the index continues to maintain its neutral territory, then the crypto market may see prices consolidate for a while until investors are confident enough again to start getting back into the market.

Presently, the crypto market is still seeing sideways movement rather than a definite upward or downward movement. This only shows a lack of interest in the market right now and not a continuation of the bear trend of 2022.

Moreover, the total crypto market cap is still holding above $1 trillion which is a good sign for the market. Usually, a return to the bear market would see the total market cap fall below $1 trillion, and this would only happen if BTC were to fall below $20,000 once more.

Unless such a market cap is experienced, the current trend only signals a correction from the run-up to $30,000. Also, as long as BTC continues to maintain firmly above its 200-day moving average, the bull trend is still sustained on a long-term basis.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

193 +