Bitcoin investor sentiment has stalled amid struggling prices in the market. While the digital asset continues to hold the $16,000 level, investors have pulled out of the market, causing no significant moves up or down, and as a result, investor sentiment hasn’t changed.
Bitcoin investors are still scared
The crypto Fear & Greed index shows that bitcoin investor sentiment hasn’t really changed much over the past month. It closed out the month of November with a score of 29, which put it right in fear territory, but it hasn’t been able to break out of this trend since.
The score on this index over the month of December fluctuated for the most part between 26 and 30, and maintained an almost linear trend during this period. Even now, the Fear & Greed Index is at 28, one point higher than 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 don’t want to take any risks. This is why the index has not been able to enter the realm of greed. On the other hand, sales sentiment at a time like this has not been as strong as expected. If investors sold more of their bitcoin, it would have been obvious as the index would slide further down. Instead, it maintains a near-constant scoring level, meaning that hold sentiment now dominates the market.
Will BTC see a recovery soon?
Bitcoin is still struggling to regain the momentum it lost over the past month. Due to this hesitation of investors to act with their tokens, the price of the digital asset followed the same path as the sentiment. BTC has now refused to move 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 fallen to historic lows. So it is likely that the last two days of the year 2022 will follow the same trend. Recovery should not be expected by any means as momentum will continue to wane as people take a break from the markets to celebrate with family.
Rather, it is important that BTC holds above $16,000 to end the year. Anything below this level would be very bearish and could lead to more declines in the market as the bears take control. But a finish above $16,000 reinforces investors’ determination to hold on to their coins.
BTC is changing hands at a price of $16,519 at the time of writing. The price is down 0.43% in the last 24 hours and 2.01% in the last 7 days.
Featured image of Finbold, chart from TradingView.com