Data of the Bitcoin Fear & Greed Index suggests the average investor sentiment has now been inside the extreme fear zone for 13 straight days.
Bitcoin Fear & Greed Index Is Still Pointing At Extreme Fear
It is important to note that the word “you” means “you”. “Fear & Greed Index”It is an indicator that was created by Alternative The index tells you about the general sentiment among traders of Bitcoin and other cryptocurrencies. Index determines sentiment by using data from five factors, including market cap dominance and trading volume. Also, Google Trends is used to measure social sentiment. The index then uses a numerical scale that ranges from zero to one hundred.
Values above 53 are indicative of an investor’s greedy attitude, while values below 47 show that fear is dominant. Between the two thresholds, there is a mentality of net neutrality.
There are two other regions that make up the core of these three. “extreme” zones in the Fear & Greed Index, known as the extreme fear The following are some examples of how to get started: extreme greed. The latter is found above and beyond 75, while the former can be seen at or below 25.
Now, here is how the sentiment among investors in the current Bitcoin market is, according to the Fear & Greed Index:
As you can see, at this moment the sentiment is extreme fear, as the indicator sits at a 23. The despair among the investors isn’t new, as the index has, in fact, remained in this region for the last couple of weeks.
As displayed in the chart, the Bitcoin Fear & Greed Index has indicated extreme fear for 13 consecutive days now, underscoring the FUD that has been present in the market. According to history, however, this extreme level of fearfulness may not necessarily be bad for BTC. Often, digital asset markets tend to move in a direction that goes contrary to the crowd’s belief.
The probability that the opposite will occur is highest in extreme sentiment zones. Major tops and lows have historically formed while the index was located within the zone.
A prolonged stay in the extremist fear zone coincided with November’s price bottom. Clearly, though, that extreme fear streak wasn’t enough to reignite sustained bullish momentum for BTC, as the asset has only consolidated since then.
It remains to be determined whether or not the latest extreme fear can change this, and if the cycle will take some time to reach its bottom.
BTC price
Bitcoin’s price is unchanged compared to a week ago, at $87,500.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: www.newsbtc.com
