Investor Confidence Index Signals Market Downturn

According to BlockBeats, on-chain data analyst Murphy shared on social media that Glassnode's 'Investor Confidence Index' has entered the 'red signal' zone, indicating a market sentiment downturn after a previous peak. This marks the first occurrence of this signal in seven months. Murphy noted that in the past two years, the index has entered the red zone three times, each followed by a period of 1 to 2.5 months before the trend shifted from weak to strong. Since August 29, the index transitioned from the green 'optimistic zone' to the yellow 'hesitation zone,' where it has remained for an extended period, setting a record. Typically, after the first red signal appears, it does not quickly revert to the green confidence zone within a few days.