Bitcoin (*22*) Fear Streak Extends To 22 Days As | Crypto News
Data exhibits the Bitcoin Fear & Greed Index continues to be inside the intense worry zone as the cryptocurrency market continues to wrestle.
Bitcoin Fear & Greed Index Is Still Pointing At ‘(*22*) Fear’
The “Fear & Greed Index” refers to an indicator created by Alternative that tells us about the average sentiment current among merchants in the Bitcoin and wider cryptocurrency markets. The index makes use of the data of the next 5 components to decide the market mentality: trading quantity, market cap dominance, volatility, social media sentiment, and Google Trends.
When the worth of the metric is larger than 53, it means the sentiment shared by the bulk of the traders is that of greed. On the other hand, the indicator being under 47 suggests the traders are fearful. Naturally, values mendacity between the 2 thresholds point out the presence of a web impartial mentality.
Besides these three main zones, there are also two ‘excessive’ areas called the excessive worry (25 and under) and excessive greed (above 75). Recently, the market has been inside the previous of the 2.
Here is how the latest worth of the Bitcoin Fear & Greed Index appears to be like:
As is seen above, the Bitcoin Fear & Greed Index has a worth of 7, which is fairly deep into the intense worry zone. In fact, this degree of despair is one thing that the merchants have hardly ever held traditionally.
The Fear & Greed Index has persistently been at equally low ranges during the last couple of weeks, as the below chart exhibits.
Overall, the indicator has been caught inside the intense worry territory for 22 straight days now. The current dangerous market sentiment is a consequence of the drawdown that the Bitcoin price has confronted.
In the past, cryptocurrency markets have often tended to transfer in the direction that goes opposite to the expectations of the bulk. The probability of a contrarian transfer occurring has usually been the strongest in the intense sentiment zones as that’s where the group is the most sure about the market’s end result.
Given this, the current excessive worry mentality might help the sector backside out. The lowest that the metric has gone this cycle is 5, which is analogous to the bottom level of the earlier bear market. In that bear market, however, the market consolidated and spent more time inside the intense worry zone even after the low in the Fear & Greed Index, before a backside was ultimately reached.
It now stays to be seen how long Bitcoin and others will take to hit a cyclical low this time around.
BTC Price
Bitcoin has been unable to make a lot recovery since its bounce from the $60,000 degree as its price continues to commerce around $67,700.
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