Traders are now feeling more positive about the Bitcoin price, according to a sentiment tracker. Alternative.me's crypto Fear & Greed Index now sits at 57—on a scale from one to 100—its highest levels since last August. This shows that traders are more bullish than they have been in the last six months, possibly riding on the back of Bitcoin’s price breakout.
Traders are feeling more bullish about Bitcoin. Image: Luno
In fact, traders are as confident in the market as they were back in August, when the price went as high as $12,500. Currently the Bitcoin price is just $9,100, having failed to crack the $9,500 mark. But other indicators suggest Bitcoin’s bullish momentum is on the rise.
Bitcoin volume is growing
Bitcoin trading volume has picked back up. This is a sign that traders are getting more active in the market again.
Bitcoin's volume is starting to grow again. Image: Luno
According to the data provided by Luno, Bitcoin volume dipped significantly by the end of 2019, before picking up again in January 2020.
While the current volumes are lower than the spikes seen throughout 2019, they are starting to grow again, suggesting there could be further volumes rises on the cards.
Bitcoin volatility is growing
Bitcoin's volatility is also trending upwards. In the last 30 days, Bitcoin's volatility has gradually increased since the beginning of the year.
Bitcoin's volatility is starting to rise again. Image: Luno
For Bitcoin’s price to rise—and fall—volatility is obviously a factor. Again, while Bitcoin is still less volatile than it was last year, it is becoming increasingly volatile, suggesting that greater price shifts are on the way. But will the bullish momentum continue or will crypto winter set in once again?
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.