Bitcoin Fear and Greed Index Returns to Neutral Level for the First time in 2022
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The Bitcoin Fear and Greed Index allays the overall market sentiment towards BTC through the evaluation of a combination of factors, including volatility, surveys, social media activity, dominance, and many others.
On February 8, the index returned to neutral levels 48, after about three months of remaining in fear or extreme fear levels, according to Alternative.me.
The market sentiment index had dropped to 45 by December 22, followed by Bitcoin regaining some bullish momentum from $46K to $52K before finally succumbing to the bearish pressure of the day. Ever since the index has oscillated between fear and extreme fear conditions.
As of today, the BTC Fear and Greed Index is at 50, a solidly mildly positive position, as the cryptocurrency regained bullish traction in February. That said, this does not rule out the possibility of a return to bearish levels should bearish factors return.
Currently, BTC faces significant resistance at the $45K barrier, as millions of dollars worth of short positions get liquidated. However, the funding rate remains low, indicating that traders need to exercise caution to avoid near-term liquidations.
Key Bitcoin Levels to Watch — February 10
BTC continues to show significant bullish resilience as the benchmark cryptocurrency inches closer to breaking the $46K resistance. The cryptocurrency dipped below $43.5K support a few hours ago on the release of the US CPI data.
As I projected in the last projection, I expect a bullish continuation over the coming days, as the $50K resistance comes into view for BTC traders. Also, any bearish price action in the near term should get repelled by the longer ascending trendline.
Meanwhile, my resistance levels are at $46,000, $47,000, and $48,000, and my key support levels are at $45,000, $44,000, and $43,000.
Total Market Capitalization: $2.04 trillion
Bitcoin Market Capitalization: $858.5 billion
Bitcoin Dominance: 42%
Market Rank: #1
