Bitcoin Fear & Greed Index Declines to Neutral Level at 50

The Bitcoin Fear & Greed Index has recently dropped to a neutral level of 50, indicating a balanced market sentiment. Key points include:

The index uses five factors: volatility, trading volume, social media sentiment, market cap dominance, and Google Trends.
A value above 53 signals greed, below 47 indicates fear, and values between these thresholds reflect neutrality.
The index previously peaked at 78, showing extreme greed before declining due to a price correction following a recovery rally.
This is the first time since mid-October that the index has entered neutral territory, reflecting investor uncertainty about Bitcoin's future.
Historically, markets tend to reverse when extreme greed or fear is present; therefore, current neutrality may facilitate a potential price reversal.

Currently, Bitcoin is priced at approximately $94,200, down nearly 4% over the past week.