Bitcoin Fear Fading? Sentiment Hits Highest Since Mid-January

Data shows the Bitcoin Fear & Greed Index has recovered to its highest level since mid-January, a sign that belief is returning among crypto traders.

When the indicator has a value greater than 53, it means the average trader sentiment is one of greed. On the other hand, the indicator being below 47 implies the dominance of fear. The values in between the two cutoffs correspond to a net neutral mentality.

Here’s what the current market sentiment is like, according to the Fear & Greed Index:

As is visible above, the indicator has a value of 33 right now, which suggests that the Bitcoin market sentiment is one of fear. This is actually an improvement compared to what the investor mentality was like just a few days ago. From the chart below, it’s apparent that the Fear & Greed Index had a value of 21 on April 17th.

In January, some relief had come for the market as the recovery surge induced a flicker of greed among investors, but things changed quickly as the price crash that followed took the Fear & Greed Index to its lowest levels of the cycle.

Recently, Bitcoin has again been making an attempt at recovery, and market sentiment has responded with an improvement. The current value of 33 is the highest that the index has been since January 19th.

While sentiment has improved from the extreme fear zone, it’s still inside fear, meaning that investors aren’t yet fully on board with the bullish momentum. If history is anything to go by, though, this fact may actually play into the asset’s benefit. Often, digital asset markets have tended to move in a way that goes contrary to the expectations of the majority.

Bitcoin’s recent rally has taken its price to the $76,600 mark.