Cryptocurrency analytics firm Alphractal has shared its latest views on the state of the crypto market, focusing on sentiment indicators like the Fear & Greed Index, social media, and Google Trends data.
Market Sentiment Indicators
Alphractal highlighted that the Fear and Greed Index recently broke out of the “extreme greed” zone, a phase usually associated with market tops. This shift coincided with Bitcoin’s $108,000 peak. The analysis suggests that a breakout from this zone could signal the start of a more sustainable market trend.
Analysis of Search Trends
The firm also pointed to Google Trends data that showed a spike in search interest when Bitcoin reached its all-time high of $100,000. However, overall search volume remained consistent with levels observed since 2022. The apparent decline in interest once Bitcoin fell below the $100,000 threshold suggests that new entrant participation in the market remains low.
Role of Social Media in Analysis
Alphractal analyzed sentiment using the Alpha Crypto Sentiment tool on social media platform X, revealing a shift from euphoria to neutral territory, reflecting a cooling in investor excitement. Despite the waning interest from new entrants, Alphractal sees the positive sentiment among existing market players as a potential catalyst for continued upward momentum in the medium term.
Despite waning interest from new entrants, Alphractal sees potential for continued growth based on positive sentiments among current market players in the medium term.
