Bitcoin News Today: Bitcoin Fear & Greed Index Hits 64 as Investor Sentiment Turns Bullish

Investor sentiment toward Bitcoin has rapidly shifted from neutrality to greed, according to the Bitcoin Fear & Greed Index, developed by Alternative. The index, which gauges market psychology through factors such as trading volume, volatility, market cap dominance, social media sentiment, and Google Trends, now reads 64, placing it firmly in the greed territory. This marks a swift reversal from a recent dip into the neutral range, where the index briefly reached 53 over the weekend following a pullback in Bitcoin’s price to $112,000 [1].

The index’s return to the greed territory reflects a growing sense of optimism among traders, who appear to be reassessing the risk-reward profile of Bitcoin following its recent consolidation. Bitcoin’s price has since recovered slightly, trading at approximately $114,900, up nearly 2.5% from its seven-day low [1]. The uptick in sentiment suggests that investors are beginning to see value in the dip, with some market participants positioning for a potential rebound and a resumption of bullish momentum.

The index operates on a scale from 0 to 100, with levels above 54 indicating greed, below 46 signaling fear, and the middle range representing neutrality. Levels above 75 and below 25 are considered extreme, often preceding market reversals. Historically, Bitcoin has shown a tendency to move in the opposite direction of majority sentiment, especially during extreme readings [1]. The current level of 64, while not in the extreme greed zone, suggests a clear shift in market psychology from caution to optimism.

July saw the index hover in the extreme greed territory, ending the month at 72. This indicates that the recent correction could be a reaction to an extended period of optimism. With sentiment now resetting, the market remains on watch for further directional cues. Traders are closely monitoring key psychological price levels, such as the $112,000 support, to determine whether the recent dip has created a buying opportunity [2].

While the return of greed is a positive sign for risk-on activity, analysts caution that it does not guarantee a sustained upward move. The crypto market remains susceptible to rapid shifts, and disciplined trading strategies are still necessary to navigate potential volatility. A return to greed, however, does suggest that investors are once again willing to take on risk, which could drive renewed buying pressure and support further price appreciation [3].

As Bitcoin continues to trade near $114,900, the evolution of market sentiment will be a critical indicator for assessing the potential for a new bullish phase. Investors are advised to remain observant of how the Fear & Greed Index evolves in the coming weeks, as it may provide early signals of broader market turning points [1].

Source: [1] Bitcoin Neutral Sentiment Didn’t Last Long: Investors Already Greedy Again (https://www.newsbtc.com/bitcoin-news/bitcoin-neutral-last-long-investors-greedy-again/)

[2] BTCUSD - Bought the $112K dip? 5 signs Bitcoin's bull run is ... (https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96556176/bought-the-112k-dip-5-signs-bitcoin-039-s-bull)

[3] XRP's 5% Price Surge Chases $5: Market Rebel Or Quick ... (https://dailycoin.com/xrps-5-price-surge-chases-5-market-rebel-or-quick-trick/)