Bitcoin News Today: Stable Crypto Sentiment Signals Market Reset for Sustainable Rally

Coinotag.> The cryptocurrency Fear and Greed Index has climbed to 51 as of October 28, marking a shift to "neutral" sentiment after weeks of extreme fear, according to alternative data platforms. This represents a 22-point rebound from last week's reading of 29, reflecting stabilizing investor confidence and reduced selling pressure in the market. The index, which aggregates volatility, trading volume, social media activity, and Bitcoin dominance among other metrics, now signals a balanced environment for cautious participation.

BlockBeats News.> The index's ascent follows a volatile October, during which it oscillated between greed (74 on October 5) and extreme fear (22 on October 17). The recent rebound was catalyzed by a $19 billion liquidation event on October 10-triggered by President Donald Trump's China tariff announcement-that briefly pushed Bitcoin below $107,000 before a recovery to $115,566. Analysts note that Bitcoin's dominance in the crypto market has edged up to 55%, supported by a 31.1% surge in spot trading volume to $75 billion, per Cryptorank data.

The neutral reading encourages measured exposure, with market participants weighing technical indicators over headlines. Glassnode analytics show that cumulative volume delta-a gauge of buying pressure-has flattened since the October 10 liquidation, suggesting that selling pressure has peaked. Meanwhile, CryptoQuant's Bitcoin Combined Market Index (BCMI) has returned to neutral territory, historically a precursor to new bull cycles. "This is a cooling period, not a downturn," said one analyst, emphasizing that undervalued metrics like Bitcoin's MVRV ratio (1.8) and SOPR (1.02) indicate accumulation rather than panic selling.

Institutional and retail investors are also monitoring Bitcoin's accumulation phase, marked by declining on-exchange reserves and rising off-exchange holdings. CryptoQuant highlights that this pattern often precedes upward momentum, as seen in 2020 and 2024 cycles. Additionally, Bitcoin's market cap expanded 2.76% to $2.3 billion in the past week, while Ethereum and Solana saw gains amid renewed optimism around Binance's post-CZ pardon prospects.

Despite the cautious optimism, challenges persist. The index remains vulnerable to macroeconomic shocks, and regulatory developments-such as BlackRock's Larry Fink labeling Bitcoin and gold "assets of fear," as reported by Decrypt-highlight lingering skepticism. However, the stabilization of funding rates and normalization of perpetual trading volumes suggest that long-term capital is gradually re-entering the market. As one analyst noted, "October's turbulence may have reset the table for a more sustainable rally."