Crypto Fear & Greed Index Hits 30-Day High After Better Than Expected Inflation, CPI Data

[ad_1]

Bitcoin (BTC) is currently focused on recovering the $18,000 level as the flagship cryptocurrency shows signs of a potential breakout upside. With the asset making significant gains above $17,000, there is a general shift in social sentiment around Bitcoin.

Indeed, as of December 14, the crypto social indicator “Fear and Greed Index” reached a 30-day high of 30 points. Notably, the inter-market sentiment gauge last ranked on Nov. 8 at 31, according to data from Alternative.me.

Crypto fear and greed chart. Source: Alternate.me

It should be noted that the social indicator tells investors about a possible upcoming price movement through an assessment of the general market. Along this line, rising readings suggest the index is likely moving towards greed, a state associated with many buyers, while lower readings indicate fear that has engulfed the market.

Bitcoin Fear and Greed Index. Source: Alternate.meBitcoin reacts positively to inflation data

In this line, the latest score comes after Bitcoin reacted positively to the latest Consumer Price Index (CPI) and inflation data which came in below expectations. In fact, the data was a relief as it highlighted that the Federal Reserve’s efforts to contain inflation were paying off.

US inflation in November came in at 7.1% year on year vs. 7.3% expected, while monthly CPI was 0.1% lower vs. 0.3% expected.

In recent months, fear dominated the market as Bitcoin continued to trade below the crucial $20,000 position after being weighed down by inflation. Additionally, Bitcoin’s potential to embark on a bull run has been invalidated by the collapse of cryptocurrency exchange FTX.

bitcoin price analysis

As it stands, Bitcoin is changing hands at $17,836, with the daily chart seeing gains of almost 4%. Elsewhere, the weekly shows Bitcoin trading in the green zone with gains of almost 6%.

Seven-day Bitcoin price chart. Source: Finbold

According to Bitcoin’s one-day technical analysis, the asset is still enjoying bullish sentiment with the summary lining up to “buy” at 10 while the moving averages are also for buying at 9.

Bitcoin technical analysis. Source: Trading View

Besides the positive impact of the inflation data, Bitcoin still needs input from the bulls to recover the $18,000 position. It should be kept in mind that Bitcoin bulls and bears have recently had nearly equal strengths.

At the same time, Bitcoin investors will be watching other activity in the crypto space, such as the arrest of FTX founder Sam Bankman-Fried and the possible prosecution of cryptocurrency exchange Binance in the States. -United.

However, the crypto community remains optimistic about the future prospects for Bitcoin and the general market in 2023. As Finbold reported, a survey by crypto tracking website CoinMarketCap shows that over 80% of crypto enthusiasts crypto think 2023 will be bullish with Bitcoin ranking among the major movers.

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.

[ad_2]