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Bitcoin Halving: positive sentiment of BTC

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Just a few hours after Bitcoin’s Halving, the overall market sentiment is quite bullish. But, do you know how to check the sentiment of the crypto market? With the alternative.me fear and greed index, you can get an idea about Bitcoin’s sentiment.

Bitcoin Halving is one of the most uncertain events in the cryptocurrency world. The crypto mining sector is completely disrupted. Well the rewards for validating each block are cut in half, from 12 to 6.5 BTC.

Bitcoin sentiment is an index measured in various ways and by different platforms. But they all use more or less the same principle.

, Bitcoin Halving: positive sentiment of BTC, Forex-News, Forex-News

The lesser the fear, the more chance of an increase in Bitcoin prices there will be, but also a high possibility of a downward correction. The same is true in reverse, there is a good chance that the price will fall, but there is also the option of an upward correction.

Bitcoin sentiment bullish ahead of Halving

Currently, Bitcoin’s sentiment index is at 56. Which shows a “Greed” or greedy signal in Spanish.

This shows that the crypto ecosystem overall expects a bullish price correction before and after Bitcoin’s Halving occurs. But, as we mentioned, there is also the risk of a change in the trend of BTC pointing downwards.

, Bitcoin Halving: positive sentiment of BTC, Forex-News, Forex-News
Source: Alternative.me

Why is there a need for a Bitcoin Sentiment Index?

It is no secret to anyone that the crypto market is quite volatile and emotional. And especially if such a massive event is about to occur on the cryptoverse, such as Bitcoin’s Halving.

People tend to be greedy when the market is on the rise, resulting in FOMO formation, or fear of missing bullish trends.

Likewise, people often sell their coins in irrational reaction to seeing red numbers.

It is for this reason that various platforms try to create these indexes that many Hodlers do not get carried away by their emotional side.

“Extreme fear may be a sign that investors are overly concerned. That could be a purchase opportunity.
When investors become too greedy, that means the market needs to be corrected. “
, comments the alternative.me team.

How is the index shaped?

For the formation of the Bitcoin sentiment index, data is taken from 6 different sources. Each of these has the same weight in the change of the level shown in the index.

Currently, Bitcoin’s sentiment index is at 56. Something positive. Knowing that Bitcoin Halving is about to happen.

Volatility

25% of the data is taken from volatility. The variation of BTC prices is taken and compared with the average values ​​of the last 30 and 90 days. The greater the volatility, the greater the fear in the market.

Market volume

The other 25% of the weight is taken from the current trading volume of the crypto market. And they are compared again with the 30 and 90 day levels. The greater the Bitcoin trading volume, the greater the optimism.

Bitcoin’s sentiment index is currently at 56. Which shows a “Greed” or greedy signal in Spanish. Just hours after Bitcoin’s Halving this is a good sign.

Social networks

With 15% weight in the data collected, he takes the data from Reddit and Twitter. There are the mentions in the publications, as well as the hashtags. In addition, the number of interactions that have a short period of time is taken.

An unusual high interaction rate results in a growing public interest in the currency and, in our eyes, corresponds to positive market behavior.

Polls

With another 15%, the opinion of between 2,000 and 3,000 people is taken, so you have an idea of ​​a large group of crypto investors.

Bitcoin dominance

At 10%, the dominance of a coin resembles the market capitalization share of the entire crypto market. Especially for Bitcoin, the platform believes that an increase in Bitcoin’s dominance is caused by fear of altcoin behavior. Also, the fact that Bitcoin is increasingly becoming the safe haven.

Google Trends

Google Trends data is extracted for various Bitcoin-related search queries and those numbers are analyzed. Especially changing search volumes as well as recommending other popular searches currently.

With all this, the sentiment of Bitcoin is taken and this is optimistic before Halving. Do you think BTC prices will rebound after the event?



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