The data shows that the Bitcoin market has once again become a place of extreme fear as its price has retraced to $59,000.
Bitcoin Fear & Greed Index Suggests Market Now Extremely Fearful
The “Fear & Greed IndexAlternative created an indicator that shows the current sentiment in Bitcoin and the wider crypto markets.
This index is based on five key factors, including volatility, trading volumes, social media sentiments, market cap dominance and Google Trends. The index then uses a scale from 0-100 to represent this estimate.
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The indicator’s values above 53 indicate that the investors are greedy, whereas those below 47 show fear. This region is a natural representation of a neutral mindset.
Aside from these three regions, there are two additional special feelings called the extreme fears and the extreme greed. These feelings are present at ages 25-75.
Now, here is what the latest value of the Bitcoin Fear & Greed Index looks like:
As can be seen above, at this moment the indicator’s value is 25, which indicates that the market has just entered the zone of extreme fear. The metric has changed significantly since yesterday.
The below chart shows the trend in the Bitcoin Fear & Greed Index over the past month.
From the graph, it’s apparent that the Fear & Greed Index had been at a high level near the end of July, but during the bearish momentum that had followed in the BTC price, the metric’s value had also gone through a notable drop.
By the end of last month the index value had dropped to 17.
However, the recent improvement in the asset led to a rise of the sentiment index to 48. This growth, however, appears to have been short-lived, with the BTC value seeing a steep drop in price. retrace.
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It may be that Bitcoin’s sentiment is worsening, but this does not necessarily mean it will suffer. Bitcoin’s price has historically moved upward. against Extreme regions have the highest expectations.
Tops and bottoms tend to occur when the market is in these zones. With the Fear & Greed Index now back inside extreme fear, It’s possible that a bottom could be likely to take place. The asset’s drop may not be the end of its decline.
BTC Price
Bitcoin’s price is already showing signs of recovery. It has increased to $59,000 from the low it reached earlier that day of just under $58,000.
Featured Image from Dall E, Alternative.me and chart from TradingView.com
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Source: www.newsbtc.com
