Bitcoin Market Sentiment Shifts to Neutral Amid Price Recovery

The Bitcoin market sentiment has improved, with the Fear & Greed Index moving into the neutral zone for the first time in months.

Key Points:

The Bitcoin Fear & Greed Index measures trader sentiment using market cap dominance, trading volume, volatility, social media sentiment, and Google Trends.
The index scale ranges from 0 to 100, with values below 47 indicating fear and above 53 indicating greed. A value of 48 suggests neutral sentiment.
The recent change from a value of 26 (fear) to 48 (neutral) is attributed to Bitcoin's recovery rally, which pushed its price beyond $97,000.
Despite the neutral sentiment, investors remain cautious about embracing the bullish trend.
The index's entry into the neutral zone marks the first occurrence since late October; it hasn't been in the greed zone since early October.
The rally triggered significant liquidations, marking the largest short-liquidation event across the top 500 cryptocurrencies since October 10, as noted by Glassnode.

Bitcoin is currently priced around $97,500, having risen over 7% in the past week.