Crypto Fear and Greed Index Hints at Deeper Correction This August

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The crypto market is flashing mixed signals heading into August. Bitcoin has slipped back toward $113,000, while Ethereum struggles to reclaim key resistance levels. The total market cap currently stands at a strong $3.7 trillion, but underlying sentiment may be due for a reset. 

Bitcoin remains the dominant force, commanding 61% of the market, yet key indicators suggest a shift may be near.

Crypto Fear & Greed Index Signals Caution

Source : Coinmarketcap

The Crypto Fear & Greed Index currently sits at 54, in the Neutral zone. While some view this as a sign of market stability, others, like prominent analyst ALTucard, see it as a warning.

“Neutrality is a zone of indecision. I’m not deploying capital here. I’m patiently waiting for fear,” ALTucard posted on X. Historically, he argues, the best Bitcoin buying opportunities emerge during Extreme Fear, not calm neutrality.

This comes after 39 consecutive days of greed or higher sentiment levels. 

According to Crypto Ricardo, a reset might be approaching:

“Logically, we need fear or at least neutral for a healthy reset. June’s reset lasted just 5 days with only 1 day in fear.”

Even after a market dip, the sentiment has barely cooled, signaling potential overconfidence and a lack of real fear. This has analysts calling for a deeper pullback to restore healthy buying conditions.

Also Read :   August 2025 Crypto Calendar: Key Unlocks, Launches, Delistings, Airdrops & Global Events to Watch   ,

Bitcoin & Altcoins Suffer Sharper Pullbacks

Bitcoin is currently trading around $113,780, posting a 1.93% daily decline. Yet it remains the anchor of investor trust, buoyed by ongoing ETF inflows and long-term holder accumulation. Analysts continue to project a potential breakout toward $120,000 and beyond, especially as exchange reserves hit multi-year lows.

However, with sentiment still leaning toward greed, we can expect a stronger correction before any major rally resumes.

The altcoin market saw a pullback today as sentiment shifted. Ethereum (ETH) dropped 5.23% to $3,526, even after a $250 million whale accumulation this week. BNB is down 2.89% to $763, and Solana (SOL) fell 4.39% to $164. Cardano (ADA) and Dogecoin (DOGE) also slipped but continue to hold investor interest.