Data reveals excessive worry sentiment within the Bitcoin market has continued for nearly a month now, the longest stretch since April 2020.
Bitcoin Market Sentiment Remains In Extreme Fear Territory
As per the most recent weekly report from Arcane Research, the crypto worry and greed index has continued to level at excessive worry this week.
The “fear and greed index” is an indicator that measures the overall market sentiment amongst Bitcoin and crypto buyers.
The metric makes use of a numeric scale that runs from one to hundred for representing this sentiment. All values above “50” signify greed available in the market, whereas these under the edge recommend worry amongst buyers.
The excessive values of above 75 and under 25 suggest sentiments of “extreme fear” and “extreme greed,” respectively.
Historically, bottoms within the value of Bitcoin have tended to kind in periods of maximum worry. On the opposite hand, the crypto has noticed tops throughout stretches of maximum greed.
Some buyers suppose that due to this, it’s greatest to purchase throughout excessive worry, whereas excessive greed is right for promoting.
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“Contrarian investing” follows this strategy. Warren Buffet’s well-known quote sums it up: “Be fearful when others are greedy, and greedy when others are fearful.”
Now, here’s a chart that reveals the pattern within the Bitcoin worry and greed index over the previous 12 months:
The worth of the indicator appears to have been fairly low lately | Source: Arcane Research's The Weekly Update - Week 21, 2022
As you’ll be able to see within the above graph, the Bitcoin worry and greed index has a worth of 16 proper now, suggesting that the market is extraordinarily fearful.
These low values of the metric have remained for nearly a month now, making it the longest stretch of maximum worry since proper after the COVID crash again in April 2020.
Related Reading | Bitcoin Exchange Outflows Suggest That Investors Are Starting To Accumulate
The report notes that lengthy intervals of poor sentiment aren’t extraordinary within the crypto market, however up to now such stretches have often noticed non permanent spikes to higher sentiment.
In the month of May, there was no such interruption that supplied Bitcoin buyers with a glimmer of hope.
BTC Price
At the time of writing, Bitcoin’s price floats round $31.4k, up 6% within the final seven days. Over the previous month, the crypto has misplaced 16% in worth.
The under chart reveals the pattern within the value of the coin over the past 5 days.
Looks like the value of the crypto has noticed a push up within the final couple of days | Source: BTCUSD on TradingView
Bitcoin has now maintained strongly above the $31k mark for the primary time for the reason that starting of May. However, for the time being, it’s unclear whether or not this restoration will final.
Featured picture from Unsplash.com, charts from TradingView.com, Arcane Research
