Data shows that Bitcoin investors still hold a sentiment of fear as the cryptocurrency’s price continues to consolidate.
Bitcoin Fear & Greed Index Is Currently Pointing At ‘Fear’
You can also find out more about the following: “Fear & Greed Index”It is a graphical indicator that was created by Alternative That, in short tells us the sentiment among traders on the Bitcoin and wider cryptocurrency market.
This index is based on five data points: trading volume, volatility, sentiment in social media, market cap dominance and Google Trends. The indicator scores this mentality between zero to hundred.
When the value of this metric is greater than 53, investors share an attitude of greed. Under 47 signifies that the fear dominates the market. This region is characterized by neutrality.
Now, here is what the current value of the Fear & Greed Index looks like:
As is visible above, the Bitcoin Fear & Greed Index is 34 at the moment, suggesting that the investors are feeling fear. The current fearful mentality isn’t too strong, given the distance to the neutral territory.
The chart shows that the indicator was at a particularly low level earlier in the calendar month.
On August 6th, the Fear & Greed Index had hit a low of 17, the lowest that it had gone in more than two years. The indicator reflects a particular emotion called Greed when it reaches such low levels. extreme fear.
Extreme fear is the area that exists at or below 25 years of age. Also, there is a similar area for greed. extreme greed, occurring over 75.
Interestingly, the extreme fear low coincided with Bitcoin’s bottom under the $50,000 level. This is similar to what has been observed throughout the asset’s history.
BTC tends to go against the expectation of most people. The extreme sentiment zones, where the greatest expectations are, would be the places to expect the biggest price reversal.
Bitcoin’s price is consolidating and sentiment is in normal fear. Another foray to extreme fear could be necessary to re-ignite the bullish trend. The future development of the indicator will be interesting to watch.
BTC Price
Bitcoin failed to make a break over $61,000 recently. The latest attempt to do so may also have been unsuccessful, with BTC retracing to $60,800.
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Source: www.newsbtc.com
