When Greed? Bitcoin Market Crushed Under One Full Month Of Fear

Information exhibits the Bitcoin market has been caught in a state of maximum worry because the fifth of Could, that means this run of backside sentiment has gone on for greater than a full month now.

Bitcoin Concern And Greed Index Continues To Level At An Extraordinarily Fearful Market

In line with the most recent weekly report from Arcane Research, the crypto market is presently going by means of its longest run of maximum worry because the COVID crash again in 2020.

The “worry and greed index” is an indicator that tells us in regards to the common investor sentiment within the Bitcoin and wider crypto market.

The metric makes use of a numeric scale that goes from one to hundred for displaying this sentiment. When the worth of the index is lower than fifty, it means traders are fearful in the mean time.

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Alternatively, values of the indicator above the brink indicate that traders presently share a sentiment of greed.

Values in direction of the top of the vary of under 25 and above 75 point out sentiments of maximum worry and excessive greed, respectively.

Now, here’s a chart that exhibits the development within the Bitcoin worry and greed index over the previous 12 months:

Bitcoin Fear And Greed Index

The worth of the metric appears to have been very low not too long ago | Supply: Arcane Research's The Weekly Update - Week 22, 2022

As you possibly can see within the above graph, the Bitcoin worry and greed index is exhibiting a price of 15 proper now, suggesting that the overall sentiment is that of maximum worry.

These low values of the metric have now been there for greater than a month now. Such a protracted streak final occurred following the COVID crash two years in the past. Then, the run lasted for 48 consecutive days earlier than the sentiment noticed any enchancment.

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Traditionally, bottoms have tended to kind in periods of maximum worry, whereas tops have occurred throughout excessive greed.

Due to this, some traders imagine the previous durations present excellent shopping for alternatives for Bitcoin, whereas the latter may very well be becoming promoting factors.

The buying and selling method that follows this concept is named contrarian investing. Warren Buffet’s well-known quote encapsulates it greatest:

Be fearful when others are grasping, and grasping when others are fearful.

If this philosophy is something to go by, then the present sentiment might imply now may very well be the time to purchase Bitcoin.

In the mean time, it’s unclear how lengthy this streak of maximum worry will final. It may very well be as lengthy or longer than the final one, or the sentiment might quickly see an uplift.

BTC Value

On the time of writing, Bitcoin’s worth floats round $30.4k, down 3% prior to now week.

Bitcoin Price Chart

Appears like the worth of BTC has jumped again above $30k | Supply: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradngView.com, Arcane Analysis

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