Data reveals the crypto market sentiment virtually entered into the greed territory earlier than the newest rally got here to an finish.
Crypto Fear And Greed Index Shows Investors Are Fearful Right Now
According to the newest weekly report from Arcane Research, the market sentiment is at present simply floating above the intense concern area.
The “fear and greed index” is an indicator that tells us concerning the basic sentiment amongst buyers within the crypto market.
The metric makes use of a numeric scale that runs from zero to hundred for representing this sentiment. When the worth of the index is above 50, it means buyers are being grasping for the time being.
On the opposite hand, values of the indicator under this threshold counsel that the market is being fearful proper now.
End values of greater than 75 and fewer than 25 indicate sentiments of “extreme greed” and “extreme fear,” respectively. Historically, tops have tended to kind in periods with the previous sentiment, whereas bottoms have befell within the latter ones.
Now, here’s a chart that reveals the pattern within the crypto fear and greed index over the previous 12 months:
The worth of the metric appears to have plunged down in current days | Source: Arcane Research’s The Weekly Update – Week 33, 2022
As you’ll be able to see within the above graph, the crypto fear and greed index had been steadily rising up throughout July and first half of August after being caught within the excessive concern territory for some time.
With the newest rally within the costs of cash like Bitcoin, the market sentiment improved loads and reached in the direction of the sting of the greed territory.
However, because the rally got here right down to a cease, the indicator’s worth peaked out at 47, simply three items wanting coming into into the greed area.
Since then, the investor mentality has sharply deteriorated because the metric’s worth has declined to only 28 now. This is deep into the concern vary, and really near the start of the intense concern zone.
The sluggish progress in these weeks confirmed that buyers had been hesitant to name it a bull market simply but, which is why as quickly because the rally ended, the sentiment additionally rapidly dropped again off.
At the time of writing, Bitcoin’s value floats round $21.4k, down 8% within the final seven days. Over the previous month, the crypto has misplaced 5% in worth.
The under chart reveals the pattern within the value of the coin over the past 5 days.
Looks like the worth of BTC has been largely transferring sideways throughout the previous couple of days | Source: BTCUSD on TradingView
Featured picture from Quantitatives on Unsplash.com, charts from TradingView.com, Arcane Research