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.
