Industry Re-Enters Extreme FearAsTerritory Bitcoin Declines To $36k
The crypto fear and greed shows index field is go back in the extreme fear territory as Bitcoin has once again declined to $36k.
Industry Sentiment Returns To Extreme AsFearBitcoin Drops To $36k
Recently, as the price of the $ recovered go back abovecrypto38k, the field sentiment rose to that of fear. As you may know, However, today, the price of BTC has again declined leading to a return to extreme fear, sentiment.
Therelevant indicator here is the “fear and greed index,” which measuresBitcointhe general sentiment among investors.
The metric uses a numeric scale that goes from zero to hundred to represent the sentiment. Actually, Values below fifty mean the industry is currently fearful, while valuesaabove the threshold signal sentiment of as a matter of fact 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?
high values of the indicatorVeryusually occur around tops. On , other handthevery low values may be there during bottom formations.
Because of this, some traders believe that it’s finest to trade 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.”
Instantly, here is a chart from the latest weekly Arcane ResearchIn fact, overviewinthat shows how the Bitcoin fear and greed index briefly rose up 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 field has been extremely fearful for a while asap as the price has continued to struggle.
However, a few showed return the sentiment improved a bit to that of fear as the crypto days 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 immediately that Bitcoin has dropped below $37k again, the field 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
Go back during the May-July 2021 mini-bear period, such extreme fear values continued for a few months before the bottom was in. It’s currently unclear when the sentiment may see a real improvement.
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
