Bitcoin Extreme Fear Streak Extends To 22 Days As Price Struggles
Data reveals the Bitcoin Fear & Greed Index continues to be inside the intense concern zone because the cryptocurrency market continues to battle.
Bitcoin Fear & Greed Index Is Still Pointing At ‘Extreme Fear’
The “Fear & Greed Index” refers to an indicator created by Alternative that tells us concerning the common sentiment current amongst merchants within the Bitcoin and wider cryptocurrency markets. The index makes use of the info of the next 5 elements to find out the market mentality: buying and selling quantity, market cap dominance, volatility, social media sentiment, and (*22*) Trends.
When the worth of the metric is bigger than 53, it means the sentiment shared by nearly all of the traders is that of greed. On the opposite hand, the indicator being below 47 suggests the traders are fearful. Naturally, values mendacity between the 2 thresholds point out the presence of a web impartial mentality.
Besides these three predominant zones, there are additionally two ‘excessive’ areas known as the extreme fear (25 and below) and extreme greed (above 75). Recently, the market has been inside the previous of the 2.
Here is how the newest worth of the Bitcoin Fear & Greed Index seems to be:
As is seen above, the Bitcoin Fear & Greed Index has a price of seven, which is fairly deep into the intense concern zone. In truth, this stage of despair is one thing that the merchants have hardly ever held traditionally.
The Fear & Greed Index has constantly been at equally low ranges over the last couple of weeks, because the under chart reveals.
Overall, the indicator has been caught inside the intense concern territory for 22 straight days now. The latest unhealthy market sentiment is a results of the drawdown that the Bitcoin worth has confronted.
In the previous, cryptocurrency markets have typically tended to maneuver within the route that goes opposite to the expectations of the bulk. The likelihood of a contrarian transfer occurring has usually been the strongest within the excessive sentiment zones as that’s the place the gang is essentially the most certain concerning the market’s final result.
Given this, the latest excessive concern mentality may assist the sector backside out. The lowest that the metric has gone this cycle is 5, which is analogous to the bottom level of the earlier bear market. In that bear market, nonetheless, the market consolidated and spent extra time inside the intense concern zone even after the low within the Fear & Greed Index, earlier than a backside was finally reached.
It now stays to be seen how lengthy Bitcoin and others will take to hit a cyclical low this time round.
BTC Price
Bitcoin has been unable to make a lot restoration since its bounce from the $60,000 stage as its worth continues to commerce round $67,700.
