Following the Bitcoin crash to $42k, the worry and greed index has declined to excessive worry values not seen since July of final yr.
Bitcoin Worry And Greed Index Factors At “Excessive Worry”
As identified by an analyst in a CryptoQuant post, the BTC worry and greed index has dropped to very low values.
The “fear and greed index” is a crypto indicator that measures the overall sentiment amongst traders out there.
The index makes use of numbers to characterize the sentiment on a numeric scale that goes from zero to hundred. Values of the indicator above fifty imply that the present holder sentiment is that of greed.
And values under 50 indicate that the market is fearful for the time being. Index values under 25 and people above 75 fall into the “excessive” class, signifying excessive worry and excessive greed, respectively.
The indicator often stays within the greed zone throughout bull runs. Excessive greed values have traditionally signaled {that a} correction within the worth of Bitcoin could also be close to, and a high may kind.
Then again, values of worry could also be there throughout bearish traits, and excessive worry may indicate {that a} backside may quickly kind.
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Now, here’s a chart that reveals the pattern within the Bitcoin worry and greed index over the previous yr:
The crypto worry and greed index appears to have sunk to excessive worry values | Supply: CryptoQuant
As you may see within the above graph, the indicator has now dipped to a price of 15. That is the bottom the metric has gone since July of the earlier yr.
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By the way, the day in July when such low values occurred was additionally round when the Bitcoin worth bottomed out. Nevertheless, the quant within the put up notes that this doesn’t essentially imply that the present worth has hit a backside as effectively.
Following the May crash, the months of Might and June additionally noticed comparable excessive worry sentiments a number of instances.
So, it’s reasonably doable that the present low values of the indicator could persist for some time, identical to again then, earlier than the value finds its manner again up.
BTC Value
On the time of writing, Bitcoin’s price floats round $42.4k, down 12% within the final seven days. Over the previous month, the crypto has misplaced 16% in worth.
The under chart reveals the pattern within the worth of BTC over the past 5 days.
After the crash right down to $42k a couple of days again, BTC's worth additional plunged right down to $41k yesterday | Supply: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradingView.com, CryptoQuant.com