Market Re-Enters Extreme Fear Territory As Bitcoin Declines To $36k

2022-2-4 22:00

The crypto fear and greed index shows market is back in the extreme fear territory as Bitcoin has once again declined to $36k.

Market Sentiment Returns To Extreme Fear As Bitcoin Drops To $36k

Recently, as the price of the crypto recovered back above $38k, the market sentiment rose to that of fear. However, today, the price of BTC has again declined, leading to a return to extreme fear sentiment.

The relevant indicator here is the “fear and greed index,” which measures the general sentiment among Bitcoin investors.

The metric uses a numeric scale that goes from zero to hundred to represent the sentiment. Values below fifty mean the market is currently fearful, while values above the threshold signal a sentiment of greed.

The extreme values of more than 75 or below 25 imply that investors are currently facing extreme greed or extreme fear, respectively.

Related Reading | Bitcoin Sees Poor Demand As Investors Try to Defend $37K, Is BTC In Trouble?

Very high values of the indicator usually occur around tops. On the other hand, very low values may be there during bottom formations.

Because of this, some traders believe that it’s best to sell during extreme greed and to buy during extreme fear. As Warren Buffet put it, “Be fearful when others are greedy, and greedy when others are fearful.”

Now, here is a chart from the latest weekly Arcane Research report that shows how the Bitcoin fear and greed index briefly rose up in value recently:

The trend in the metric over the past year | Source: The Arcane Research Weekly Update - Week 4

As you can see in the above graph, the Bitcoin market has been extremely fearful for a while now as the price has continued to struggle.

However, a few days back the sentiment improved a bit to that of fear as the crypto showed some recovery. On Sunday, the indicator surged to a value of 30, the highest it has been in the year 2022.

Related Reading | Volume Of Bitcoin Illiquid Supply Points To Growing Bullish Sentiment

At the time the report with the chart came out, the metric still had a value of 26. But now that Bitcoin has dropped below $37k again, the market sentiment has once again shifted into one of extreme fear.

The fear and greed index has a value of 20 right now | Source: Alternative.me

It’s currently unclear when the sentiment may see a real improvement. Back during the May-July 2021 mini-bear period, such extreme fear values continued for a few months before the bottom was in.

BTC Price

At the time of writing, Bitcoin’s price floats around $36.7k, down 0.1% in the past week.

BTC's price has plunged down in the past 24 hours | Source: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, Arcane Research

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Market.space (MASP) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 0 MASP

fear market extreme 36k bitcoin territory crypto

fear market → Результатов: 126


Why Crypto Market Fear Mirrors Lull In Volatility

Data shows the crypto market fear has been mirroring the volatility in the market recently, as the latest burst in the price of Bitcoin has improved investor sentiment. Crypto Fear And Greed Index Escapes Out Of “Extreme Fear” Zone The “fear and greed index” is an indicator that tells us about the general sentiment among investors in the cryptocurrency market.

2022-10-28 22:00


How the Fear of Traders Always Leads The Crypto Market In Constant Decline

How does the fear of crypto traders affect the market? Before I start I’d like to clarify what I mean by fear. By fear I simply mean the belief that we are still going to go lower. An example is the people who have been saying since about February that we are going to see […] The post How the Fear of Traders Always Leads The Crypto Market In Constant Decline appeared first on ZyCrypto.

2018-8-16 14:18


Фото:

88% of Cryptocurrency Exchanges Fear Major Market Crash, Want Regulation

88 percent of cryptocurrency exchanges want industry regulation, according to a survey from payment company Mistertango.   ‘The Industry is Crying Out for Regulation’ The desire for regulation apparently stems from a fear that the immature market may experience a major market crash and substantial devaluation of assets worse than what has already been seen in the first half of 2018.

2018-7-31 17:00


Фото:

Cryptocurrency Exchanges Fear Major Market Crash, 88% Want Regulation

88 percent of cryptocurrency exchanges want industry regulation, according to a survey from payment company Mistertango.   ‘The Industry is Crying Out for Regulation’ The desire for regulation apparently stems from a fear that the immature market may experience a major market crash and substantial devaluation of assets worse than what has already been seen in the first half of 2018.

2018-7-31 17:00


Uncertainties about Crypto Security leads to Drastic Fall of Crypto Prices

The past couple of hours have been dramatic in the cryptocurrency market as prices seem to be on a free fall across boards. We can only speculate, but this seems to be linked up to the fact that there are uncertainties concerning how to securely store these new form of virtual currencies without the fear […] The post Uncertainties about Crypto Security leads to Drastic Fall of Crypto Prices appeared first on ZyCrypto.

2018-7-10 22:45