Bitcoin and the crypto market have seen downside price action on shorter timeframes. The first crypto by market cap has been trading in a tight range this week with sudden spikes in volatility impacting smaller cryptocurrencies.
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Momentum seems to be favoring the bulls as Ethereum (ETH), Solana (SOL), Terra (LUNA), keep their gains as Bitcoin hints at further lows. SOL’s price records a 22% profit which makes it the best performing asset in the crypto top 10.
At the time of writing, the crypto total market stands above the important mark of $2 trillion.
Per a recent report from Arcane Research, crypto market participants are at a crossroads. The Fear and Greed index is currently at neutral ground after it saw a major spike from below.
As seen below, the research firm records the metric at 53 which is slightly above Greed levels. As Bitcoin and other large cryptocurrencies move sideways, so has this metric.
Since December 2021, market participants seem to be leaning more to the fearful side with two separate times when the index stood below Extreme Fear. Sudden moves into either extreme usually signal a price reversal.
The chart above fits this thesis as long periods of fearfulness are followed by a period of greed. This time, as market participants feel greed, Arcane Research hinted at a possible new reversal:
The Fear and Greed Index has stabilized at…