Bitcoin Reclaims $100K Mark Despite Market Observation of Crash, ETH Struggles

Following the price crash, Bitcoin trading sentiment has dropped into the fear zone, which could indicate a buy signal, according to the Fear & Greed Index.

Bitcoin Fear & Greed Index Drops into Fear Zone, Signaling Potential Buy

Bitcoin price crashed sharply from $91,252 to reach as high as $101,549 in a matter of hours on February 5. The level was defended aggressively by buyers, preventing Bitcoin from falling further.

Meanwhile, the BTC Fear & Greed Index dropped from 18 to 12 on the same day, indicating a shift from extreme fear to fear. The index could be signaling a potential buy signal as it reaches historic lows.

However, the signal is not a clear indication to buy, and investors should conduct their own research before making any decisions.

According to the Fear & Greed Index, the market sentiment is classified into five stages: Extreme Greed, Greed, Neutral, Fear, and Extreme Fear. The index takes into account several factors, including price volatility, market momentum, social media buzz, and survey data, to gauge the overall sentiment in the cryptocurrency market.

Key Data (as of 09:49 HKT on February 5)

S&P 500: 6,037.88 (+2.66% year-to-date)

Nasdaq: 19,654.02 points (+1.78% year-to-date)

10-year Treasury yield: 4.521% (-5.50 basis points year-to-date)

US dollar index: 107.93 (-0.51% year-to-date)

Bitcoin: $98,147 (+5.07% year-to-date), with a daily spot volume of $70.48 billion

Ethereum: $2,738.07 (-18.14% year-to-date), with a daily spot volume of $52.21 billion