After spending 18 days at an alarmingly low sentiment index, the crypto market has begun to show signs of positive change.

The Crypto Fear & Greed Index, known for tracking market mood, recorded a ‘Fear’ score of 28 on Saturday, breaking a streak of Extreme Fear which persisted since November 10.

This prolonged period at the index’s lowest levels drew attention within the crypto community, especially during a month that typically favors Bitcoin’s performance.

Trader Observations on Fear Index

On November 15, crypto analyst Matthew Hyland noted that the index had reached its ‘most extreme fear level’ in the current cycle. He remarked, “A path like this for BTC Dominance would now be max pain.”

A few days later, crypto analyst Crypto Seth remarked that Extreme Fear was a conservative description. Contrarily, Nicola Duke, a crypto trader, pointed out that historically, periods of extreme fear have corresponded to local price bottoms for Bitcoin.

The Crypto Fear & Greed Index displayed a ‘Fear’ score of 28 on Saturday. Source: alternative.me

Recent data from the sentiment analysis platform Santiment indicated that discussions around Bitcoin have turned increasingly positive, especially as the price approaches $92,000.

Current Market Conditions

Despite the optimistic indicators, the crypto market remains in a conservative stance, reflected in CoinMarketCap’s Altcoin Season Index, which presently shows a ‘Bitcoin Season’ score of 22 out of 100. This suggests a prevailing caution among market players amid growing concerns over macroeconomic factors, including potential recession risks, as highlighted by André Dragosch, the head of research at Bitwise Europe. He referred to the current risk-reward dynamics as reminiscent of the period during COVID.

For further insights, check out the relevant articles: BTC price pauses at $92K: Can Bitcoin avoid another crash? and When privacy and AML laws conflict: Crypto projects’ impossible choice.