Market emotions “revived” after 2 “bloody” months, 100,000 Bitcoins were withdrawn from the exchange in just 3 days

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2021-07-30 00:46:41

For the first time since May 12, the crypto market’s Fear and Greed index is in the neutral zone. Before, the index only fluctuated in a state of prolonged fear or extreme fear.

Market sentiment “revived” after 2 “bloody” months, 100,000 BTC was withdrawn from the exchange in just 3 days

It is undeniable that the cryptocurrency market (as well as other markets) has always been particularly “emotional”. Whenever the price goes up, people tend to be greedy, and conversely start to plunge, they get scared.

Therefore, market sentiment is an extremely important thing to monitor and keep in mind when making investment or trading decisions. At the time of this writing, the index is in neutral, which has not been the case since May 12 of this year, the beginning of Bitcoin’s collapse since its ATH near $65,000.

Greed and Fear Index.  Source: alternative.me
Greed and Fear Index. Source: alternative.me

The Fear and Greed Index measures sentiment just for Bitcoin and not the rest of the crypto market. However, Bitcoin is the backbone of the market, so the influence of BTC is still enormous.

And sentiment is currently neutral, which is a sign of indecision. In other words, the index shows that investors are still looking for a clearer direction at the moment.

As for the index itself, when in extreme fear, this usually signals a good buying opportunity and when extreme greed is reached, it is often time to sell. However, as a neutral, perhaps the best decision is to wait for confirmation of the upcoming trend.

However, another piece of data that signals that the positive signal is gradually recovering is that Bitcoin is gradually being bought more and the amount of BTC flowing out of exchanges in the past few days has been extremely impressive.

Bitcoin inflows and outflows.  Source: CryptoQuant
Bitcoin inflows and outflows. Source: CryptoQuant

Based on CryptoQuant’s chart, the amount of BTC taken out of exchanges in the past 2 days amounted to 100,000 BTC, completely overwhelming the amount of BTC pushed to the exchange (which would normally create selling pressure). Even historically speaking, the current data outstrips BTC withdrawals in January 2021, the start of the Bitcoin bull cycle.

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