Alternative data shows that the Bitcoin Fear and Greed Index has rebounded to 33, reaching its highest level since January 19. The index is calculated based on five dimensions: market share, volatility, trading volume, social media sentiment, and Google Trends. A value below 47 indicates that the market is in the "fear" zone.
This rebound marks a significant improvement in market sentiment from the "extreme fear" zone (index 21) on April 17. The bearish trend since the fourth quarter of last year had kept market sentiment suppressed at low levels. Although there was a brief rebound in January this year, the subsequent price plunge caused the index to hit a cycle low. The current value shows that while fear has not dissipated, it has moved away from the extreme zone.
Historical data indicates that when market sentiment is in the "extreme fear" zone, it often corresponds to important cyclical bottoms, while "extreme greed" (index above 75) often signals market tops. The current improvement in sentiment coincides with the rebound in Bitcoin's price, with BTC recently recovering to around $76,600.