**Crypto Fear & Greed Index Reaches Neutral Territory as Bitcoin Price Recovers**
After two weeks entrenched in the fear zone, the Crypto Fear & Greed Index has climbed to a neutral level, reaching 51 points. This marks a significant shift in market sentiment, reflecting renewed confidence among traders as Bitcoin’s price rebounded over the weekend.
**Bitcoin Price Recovery Spurs Improved Sentiment**
Bitcoin’s price surged to approximately $115,000 during the weekend, contributing to the sentiment index’s impressive 11-point jump from Saturday’s 40 points. Compared to last week, the index soared by more than 20 points, signaling a meaningful change in trader psychology and overall market dynamics.
**Impact of Trump’s October 10 Tariff Announcement**
The market experienced a dramatic downturn following the tariff announcement on October 10, which sent the fear index plummeting from a high of 71 to a yearly low of 24. This sharp decline coincided with a severe market crash where leveraged crypto positions worth $19 billion were liquidated, intensifying selling pressure across the board.
**Signs of Stabilization in Bitcoin Trading**
Recent data from Glassnode suggests that the aggressive selling pressure has subsided notably. Bitcoin’s selling activity has declined significantly over the last few days, indicating that negative sentiment may have reached exhaustion levels and potentially pointing toward a trend reversal.
**Technical Indicators Confirm Reduced Bearish Momentum**
Both spot and futures markets are showing signs of stabilization, with the Cumulative Volume Delta flattening for the first time since the October 10 crash. Glassnode highlighted that bearish momentum has decreased recently, supporting the view of a more balanced trading environment.
Funding rates remain below 0.01%, suggesting there is currently no excessive long positioning in the market. In fact, funding rates have turned negative several times over the past two weeks, reflecting traders’ cautious stance rather than aggressive bullish speculation.
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As Bitcoin sentiment shifts to neutral and market indicators stabilize, traders are approaching the market with a more measured perspective, signaling a potential end to the recent period of extreme fear.
https://coincentral.com/bitcoin-breaks-free-fear-zone-exit-signals-market-turning-point/