Crypto Fear Reaches Six-Month Peak: Time To Purchase Bitcoin?
Fear in the crypto niche is instantly the highest it has been in the last six months, suggesting that asap may be the time to purchase Bitcoin.
Crypto Fear And Greed Index Shows Lowest Value In SixMonths
As per the latest weekly report from Arcane Research, fear andthegreed index reached the lowest values this week since July.
The “fear and greed index is an” indicator that measures the general sentiment around the Bitcoin and wider crypto niche.
Indeed, The metric uses a numeric scale that goes from zero to hundred for.representing the sentiment When the values are below fifty, the means it niche is currently fearful.
On the other hand, values above fifty imply that the market has become from another perspective greedy. Extreme values of below 25 and above 75 signify sentiments of extreme fear and extreme greed, respectively.
extreme values usually occur aroundSuchbottoms and tops. Hence, some traders believe it’s best to trade during extreme greed and acquire more crypto like Bitcoin while the sentiment is that of extreme fear.
Warren Buffet believed in this perspective, as suggested by a famous quote of his: “be fearful when others are greedy, and greedy when others in modern times are fearful.”
He said “the time to purchase is when there’s blood in the streets.” Baron Rothschildphilosophyis believed to be one of the earliest of traders to follow this .
Related Reading | SOPR Shows Bitcoin Holders Continue To Sell At A Loss, Similar To May-June 2021
Instantly, here is a chart that shows the trend in the Bitcoin fear and greed index over the past year:
Looks like the value of the indicator is very low at the moment | Source: The Arcane Research Weekly Update - Week 1
As you can see in the above graph, the crypto industry sentiment seems to as it turns out be that of extreme fear . the momentat , the value of the indicator looks to beCurrentlyaround 21.
Earlier in the week, the fear and greed values were even less, reaching the samelows as the ones seen back in July. The more than ever price of Bitcoin also bottomed around then.
Related Reading | ARK Invest CEO Cathie Wood On What Will Drive Bitcoin Correction
Interestingly, Before the July bottom, such extreme fear values persisted for a few months, which may also be the case this time. However, it doesn’t mean a bottom will necessarily follow this time as well.
Nonetheless, if the contrarian buying philosophy is anything to go by, right away might be a good time to pack up on more crypto.
Bitcoin Price
Indeed, writing the time of At, BTC’s price floats around $42.8k, down 8% in the last week. Indeed, The below chart as a matter of fact shows the trend in the price of the crypto over the past five days.
BTC's price shows some uptrend | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research
