Bitcoin investor sentiment has reached a standstill amid struggling prices in the market. While the digital asset continues to hold the $16,000 level, investors have backed off from the market, ensuring no significant movements either up or down, and as a result, investor sentiment hasn’t moved.
Bitcoin Investors Still In Fear
The crypto Fear & Greed Index shows that bitcoin investor sentiment hasn’t really moved much in the last month. It closed out the month of November at a score of 29 which put it right in the fear territory but since then has been unable to break out of this trend.
The score on this index over the month of December has staggered between 26-30 for the most part, maintaining a nearly straight-line trend during this period. Even now, the Fear & Greed Index sits at a score of 28 and is up one point from last week’s close of 27.Fear & Greed Index trends in an almost straight line | Source: alternative.me
What this trend in the Fear & Greed Index shows is that bitcoin investors are not willing to take any risk. This is why the index has been unable to move into the greed territory. On the flip side, sell sentiment has not been as strong as expected during a time like this. If investors were selling more of their bitcoin, then it would have been obvious given that the index would slide further down. Instead, it continues to maintain a near-consistent score level, meaning hold sentiment now dominates the market.
Will BTC See A Recovery Soon?
Bitcoin is still finding a hard time regaining the momentum it has lost over the past month. This hesitancy from investors to do anything with their tokens has seen the price of the digital asset follow the same path as sentiment. BTC has now refused to move out of the $16,000 price level.BTC price maintains $16,000 level | Source: BTCUSD on TradingView.com
As a result of this, bitcoin volatility has fallen to historical lows. So it is likely that the last two days of the year 2022 will follow this same trend. Recovery should not be expected in any way because momentum will continue to decline as people take a break from the markets to celebrate with family.
Rather, it is important that BTC holds above $16,000 to close out the year. Anything below this level would be very bearish and could trigger more declines in the market as bears take control. But a finish above $16,000 strengthens investors’ resolve to hold their coins.
BTC is changing hands at a price of $16,519 at the time of this writing. Its price is down 0.43% in the last 24 hours and 2.01% in the last 7 days.
Featured image from Finbold, chart from TradingView.com