Cryptocurrency analytics firm Alphractal has shared its latest views on the state of the crypto market, examining the market dynamics of sentiment indicators such as the Fear & Greed Index, social media sentiment, and Google Trends data.
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.
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.
Alphractal analyzed sentiment using the Alpha Crypto Sentiment tool on social media platform X. The tool revealed 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. The firm concluded:
“The positive sentiment combined with low interest from new entrants could point to a continued uptrend in the medium term.”
*This is not investment advice.