Data exhibits the Bitcoin market has turned grasping once more after nearly three months of concern sentiment amongst traders.
Bitcoin Market Becomes Greedy Again After Almost Three Months Of Fear
The related indicator right here is the “fear and greed index,” which tells us what the overall sentiment amongst traders at the moment is.
The metric makes use of a numeric scale that goes from zero to hundred for representing this sentiment. All values under fifty fall into the “fear category,” whereas these above belong to “greed.”
When the index exhibits excessive values of above 75 and under 25, the market sentiment is that of maximum greed and excessive concern, respectively.
Some traders choose to promote when the market is extraordinarily grasping as tops have traditionally fashioned throughout such intervals. Similarly, additionally they suppose shopping for throughout excessive concern is healthier as bottoms are inclined to often happen then.
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There is a well-known Warren Buffet quote that resonates with this philosophy: “be fearful when others are greedy, and greedy when others are fearful.”
Now, here’s a chart from this week’s Arcane Research report that exhibits the pattern within the Bitcoin concern and greed index over the previous yr:
The indicator’s worth appears to have sharply risen lately | Source: The Arcane Research Weekly Update – Week 5
As you possibly can see within the above graph, when the report got here out yesterday the market sentiment had nearly exited the concern territory because the indicator confirmed a price of 48.
Since November, the market had been fairly fearful, usually dipping into excessive concern. But lately the metric has noticed a pointy uptrend, and in the present day, the investor sentiment is lastly again to greed for the primary time in three months because the index’s worth is now round 54.
The Bitcoin concern and greed index has now crossed the fifty mark | Source: Alternative.me
The market sentiment turning to that of greed can show to be bullish for the worth of Bitcoin as sucha sentiment often happens throughout bull rallies.
Related Reading | Bitcoin Taker Buy/Sell Ratio Shows “Buy” Signal As BTC Lifts Off
At the time of writing, Bitcoin’s worth floats round $43.5k, up 13% within the final seven days. Over the previous month, the crypto has gained 5% in worth.
The under chart exhibits the pattern within the worth of BTC during the last 5 days.
BTC’s worth appears to have surged over the previous few days | Source: BTCUSD on TradingView
Over the previous couple of weeks, Bitcoin has loved some sharp uptrend. Yesterday, the worth of the crypto briefly broke previous the $45k mark, however it wasn’t lengthy earlier than the coin got here again all the way down to the present ranges.
Featured picture from Unsplash.com, charts from TradingView.com, Arcane Research