Data reveals the Bitcoin market sentiment has remained deep in excessive worry this week as broader monetary markets additionally get fearful.
Bitcoin Fear And Greed Index Shows A Value Of 12 This Week
As per the most recent weekly report from Arcane Research, the broader monetary market is at its highest stage of worry for the reason that COVID crash in 2020.
The “fear and greed index” is an indicator that tells us in regards to the common market sentiment amongst Bitcoin traders proper now.
The metric shows this sentiment utilizing a numeric scale that runs from one to hundred. All values of the index above “50” suggest a sentiment of greed, whereas all these under the cutoff point out a fearful market.
When the indicator has values in the direction of the tip of the vary, that’s, above 75 or under 25, the market is in a state of utmost greed or excessive worry.
Some traders consider that it’s greatest to purchase when the market is extraordinarily fearful as bottoms have traditionally tended to occur throughout such intervals.
Similarly, tops have shaped previously whereas the market has gone via excessive greed so such occasions could also be excellent for promoting.
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Contrarian investing is a buying and selling method that follows this concept. To quote Warren Buffet, “Be fearful when others are greedy, and greedy when others are fearful.”
Now, here’s a chart that reveals the development within the Bitcoin worry and greed index over the previous 12 months:
Looks just like the sentiment out there has plummeted lately | Source: Arcane Research’s The Weekly Update – Week 19, 2022
As you may see within the above graph, the Bitcoin worry and greed index has a price of 12 for the time being, indicating a sentiment of utmost worry.
The crypto market isn’t the one one scared, the broader monetary markets have additionally been in a state of utmost worry for some time now.
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The market has been observing the very best excessive worry values for the reason that crash again in 2022 as a result of onset of COVID-19.
Currently, it’s unclear if the sentiment has bottomed out or if Bitcoin will bleed extra within the coming days, plunging the worry and greed index additional.
BTC Price
At the time of writing, Bitcoin’s worth floats round $30.4k, down 3% within the final seven days. Over the previous month, the crypto has misplaced 24% in worth.
The under chart reveals the development within the worth of the coin during the last 5 days.
It looks as if the value of the coin has been shifting sideways in the previous few days | Source: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradingView.com, Arcane Research
