Bitcoin Extreme Fear Streak Extends To 13 Days On Christmas
Data of the Bitcoin Fear & Greed Index suggests the common investor sentiment has now been inside the intense concern zone for 13 straight days.
Bitcoin Fear & Greed Index Is Still Pointing At (*13*) Fear
The “Fear & Greed Index” refers to an indicator created by Alternative that tells us in regards to the common sentiment shared by merchants within the Bitcoin and wider cryptocurrency markets. The index determines the sentiment by referring to the information of 5 elements: market cap dominance, buying and selling quantity, Google Trends, social sentiment, and volatility. It then represents it utilizing a numeric scale that runs from zero to hundred.
All values above 53 point out the presence of a greed sentiment among the many buyers, whereas these beneath 47 recommend the dominance of concern. Levels mendacity between the 2 thresholds correspond to a internet impartial mentality.
Besides these three core areas, there are additionally two “excessive” zones within the Fear & Greed Index, often called the extreme fear and extreme greed. The former happens at and beneath 25, whereas the latter happens above 75.
Now, right here is how the sentiment amongst buyers within the present Bitcoin market is, in keeping with the Fear & Greed Index:
As is seen above, the bulk sentiment within the cryptocurrency sector is certainly one of excessive concern in the meanwhile, with the indicator sitting at a worth of 23. The despair among the many buyers isn’t new, because the index has, in reality, remained on this area for the final couple of weeks.
As displayed within the chart, the Bitcoin Fear & Greed Index has indicated excessive concern for 13 consecutive days now, underscoring the FUD that has been current out there. If historical past is something to go by, although, the extraordinarily fearful sentiment could not really be such a nasty signal for BTC and different cryptocurrencies. Often, digital asset markets have a tendency to maneuver in a path that goes opposite to the group’s perception.
This chance of an reverse transfer usually turns into the strongest inside the intense sentiment zones, with main tops and bottoms traditionally forming whereas the index has been within the respective area.
The value low in November, which has acted as the underside for Bitcoin to date, additionally occurred alongside an prolonged keep inside the intense concern territory. Clearly, although, that excessive concern streak wasn’t sufficient to reignite sustained bullish momentum for BTC, because the asset has solely consolidated since then.
As such, it solely stays to be seen whether or not the newest keep inside excessive concern will be capable to change that or if it is going to be some time earlier than the underside is reached within the present cycle.
BTC Price
At the time of writing, Bitcoin is floating round $87,500, unchanged from one week in the past.
