Bitcoin [BTC] has experienced significant volatility in recent days, with its price fluctuating wildly. However, data now suggests that market sentiment is starting to calm down and find a more balanced position.
Neutral Shift in Bitcoin Fear and Greed Index
Recent information from Glassnode indicates that the Bitcoin fear and greed index has reached a value of 48, indicating a neutral sentiment prevailing in the market. This represents a departure from the extreme fear and greed that was prevalent during the recent price turbulence.
The index, which assesses market sentiment by considering factors such as volatility, trading volume, and social media trends, indicates that traders are now taking a more cautious approach after a period of intense market fluctuations.
Previously, on the 11th of October, the index had dropped to 32, reflecting a sense of fear among traders, even as the Bitcoin price soared to approximately $62,000. Interestingly, despite the price increase, the prevailing sentiment remained cautious, likely due to earlier price drops.
Analysis of BTC Price Movement in Response to Sentiment
Examination of Bitcoin’s price movements by CryptoCrypto suggests that the drop in the Bitcoin fear and greed index on the 11th of October was a direct response to preceding market actions.
Prior to the price surge, Bitcoin had endured several declines, driving its value down to around $60,000—a level that fell below its 50-day moving average (represented by the yellow line), a crucial support level.
However, the market rallied on the 11th of October, witnessing a 3% increase that elevated Bitcoin’s price to $62,500, pushing it above the 50-day moving average.
Despite this positive movement, the price remained below the 200-day moving average (displayed as the blue line), a more formidable resistance point.
Currently, Bitcoin is trading at approximately $64,850, experiencing another 3% gain.
The upward trajectory has enabled BTC to break through the 200-day moving average, previously acting as resistance around the $63,000 price level.
These price dynamics, coupled with the neutral sentiment on the Bitcoin fear and greed index, indicate a market cautiously optimistic about its future trends.
Steady Active Addresses Amidst Neutral Sentiment
While the Bitcoin fear and greed index has shown a neutral sentiment, the number of active addresses has remained consistently stable.
Data provided by Santiment reveals that the seven-day average of active addresses has remained unchanged, with approximately 3.5 million active addresses interacting on the network.
At present, there are about 3.52 million active addresses, demonstrating a sustained level of engagement with the Bitcoin network.
This consistent volume of active addresses indicates persistent interest from long-term holders, potentially laying a strong foundation for future price surges.
Despite the fluctuating sentiment, the stability in network activity signals a positive long-term outlook for Bitcoin.