For the first time since May 12th, the well-known cryptocurrency market Fear and Greed Index is in the neutral zone. It was previously in an extended state of fear or extreme fear.

Bitcoin Fear and Greed Index Turns Neutral

It is obvious that the cryptocurrency market, as well as other markets, is very emotional. People tend to be greedy when prices rise, and vice versa when markets fall.

Market sentiment is an important aspect to keep an eye on when making investment or trading decisions.

The Fear and Greed Index . is a tool that measures the current sentiment in the cryptocurrency market. It takes data from many sources including volatility, market momentum and volume.

At the time of this writing, the index is in a neutral state, which hasn’t been the case since May 12th this year. Since that date, fear has been the dominant sentiment. This can be explained by decreasing prices, stagnation and indecisiveness.

What does this mean for the Bitcoin price?

The Fear and Greed Index that we are using for this report measures sentiment only for Bitcoin and not for the rest of cryptocurrency markets.

Despite this, the sentiment is neutral at the moment, which indicates indecisiveness. The index indicates that investors are still searching for clarity.

As CryptoPotato recently reported, BTC is still facing serious resistance at the $40,500 mark. Here is where you can see a convergence of technical indicators, such as the bearish. 382 Fib level and the 100-day moving average. This is the first major obstacle to cryptocurrency.

When the index is in extreme fear it usually indicates a buying opportunity. When it’s feeling greedy it usually means it’s time to sell. It’s best to wait for direction confirmations if the index is neutral.