The crypto market is a very volatile place in financial terms and for an investor to be able to invest in the crypto market takes real determination and courage. But at the end of the day, it is a game of the numbers, and not everything can be left at the mercy of simply being courageous, and that is why there are tons of indicators out there used by crypto analysts to determine the very next move for the investors. One such indicator is the Bitcoin fear and greed index. It determines whether the overall sentiment for Bitcoin across the board is either greed or fear.
If it is fear, then clearly, the market is not doing any good, and no one wants to jump into the Bitcoin business at that specific time interval. It results in massive price thumps and the crypto asset losing its value. Whereas, if the index shows the sentiment to be greed then the market is booming, and investors want to chip in their money into Bitcoin.
At the moment, this index is at its lowest in five months and shows fear. It has to do with Bitcoin losing its value and going all the way to $42K, thus losing about $16K in 24 hours or less. This has led the index to point severely towards extreme fear, and as a result, not many investors are up for making an investment into Bitcoin, which further proposes a bearish market for some time. It is a calculated index that ranges from zero to 100, where zero means extreme fear and 100 means extreme greed. Something mystical has to happen for this indicator to again move towards greed and to help develop a positive sentiment towards Bitcoin from investors.
Either there could be a launch of a new project based on decentralization and closely in ties with Bitcoin that will make things going, or there has to be a huge announcement, a shake-up to tempt the investors once again into trusting Bitcoin and therefore decentralization. At the moment, Bitcoin has to focus only on crossing the $50K resistance line as it is extremely important for the cryptocurrency to do so at the moment.