Bitcoin investor sentiment has stalled amid price struggles in the market. While the digital asset continues to hold the $16,000 level, investors have withdrawn from the market, ensuring no significant movement up or down, and as a result, investor sentiment has not moved.
Bitcoin Investors Are Still Scared
The crypto Fear & Greed index shows that bitcoin investor sentiment has not been very high in the past month. It closed the month of November with a score of 29 which placed it in the fear zone but since then it has not been able to break the trend.
The score in this index in the month of December has staggered between 26-30 for the most part, maintaining an almost 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 risks. Therefore the index cannot move into greedy territory. On the flip side, selling sentiment has not been as strong as expected during times like these. If investors sell more bitcoins, then it is understandable that the index will go down. However, it continues to maintain an almost consistent score level, which means that sentiment is currently dominating the market.
Will BTC See Recovery Soon?
Bitcoin is still finding it difficult to regain the momentum it lost over the past month. This hesitancy from investors to do anything with the token has seen the price of the digital asset follow the same path as sentiment. BTC has now refused to break out of the $16,000 price level.
BTC price maintains $16,000 level | Source: BTCUSD on TradingView.com
As a result, bitcoin’s volatility has been historically low. So it is likely that the last two days of 2022 will follow the same trend. A recovery should not be expected by any means as the momentum will continue to decline as people take a break from the market to celebrate with their families.
However, it is important that BTC holds $16,000 to close the year. Anything below this level will be very bearish and could lead to further declines in the market as the bears take control. But finishing above $16,000 strengthened investors’ resolve to hold the coin.
BTC is changing hands for $16,519 at the time of this writing. The price is down 0.43% in the last 24 hours and 2.01% in the last 7 days.
Option image from Finbold, chart from TradingView.com