Following the Bitcoin crash to $42k, the worry and greed index has declined to excessive worry values not seen since July of final yr.
Bitcoin Fear And Greed Index Points At “Extreme Fear”
As identified by an analyst in a CryptoQuant submit, the BTC worry and greed index has dropped to very low values.
The “fear and greed index” is a crypto indicator that measures the overall sentiment amongst traders out there.
The index makes use of numbers to characterize the sentiment on a numeric scale that goes from zero to hundred. Values of the indicator above fifty imply that the present holder sentiment is that of greed.
And values under 50 suggest that the market is fearful in the mean time. Index values under 25 and people above 75 fall into the “extreme” class, signifying excessive worry and excessive greed, respectively.
The indicator normally stays within the greed zone throughout bull runs. Extreme greed values have traditionally signaled {that a} correction within the worth of Bitcoin could also be close to, and a high may type.
On the opposite hand, values of worry could also be there throughout bearish developments, and excessive worry may suggest {that a} backside may quickly type.
Related Reading | Bitcoin Whales Contribute 90% Of Money Inflow of Exchanges, How Can We Follow and Make Profits?
Now, here’s a chart that reveals the development within the Bitcoin worry and greed index over the previous yr:
The crypto worry and greed index appears to have sunk to excessive worry values | Source: CryptoQuant
As you’ll be able to see within the above graph, the indicator has now dipped to a price of 15. This is the bottom the metric has gone since July of the earlier yr.
Related Reading | Start Of Bear Period? Current Bitcoin Trend Looks Similar To June
Incidentally, the day in July when such low values occurred was additionally round when the Bitcoin worth bottomed out. However, the quant within the submit notes that this doesn’t essentially imply that the present worth has hit a backside as properly.
Following the May crash, the months of May and June additionally noticed related excessive worry sentiments a number of occasions.
So, it’s somewhat potential that the present low values of the indicator might persist for some time, similar to again then, earlier than the worth finds its manner again up.
BTC Price
At the time of writing, Bitcoin’s worth floats round $42.4k, down 12% within the final seven days. Over the previous month, the crypto has misplaced 16% in worth.
The under chart reveals the development within the worth of BTC over the past 5 days.
After the crash all the way down to $42k just a few days again, BTC’s worth additional plunged all the way down to $41k yesterday | Source: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradingView.com, CryptoQuant.com
