Knowledge reveals the Bitcoin concern and greed index has continued to show low values for the third straight week because the market stays fearful.
Bitcoin Concern And Greed Index At present Factors At “Concern”
In keeping with the most recent weekly report from Arcane Research, the BTC market has now remained fearful for the third consecutive week.
The “fear and greed index” is an indicator that tells us what the overall sentiment amongst traders within the Bitcoin market presently is.
The metric makes use of a numeric scale that runs from one to hundred for representing this sentiment. All values above fifty signify that the market is grasping proper now
However, indicator values beneath the cutoff present that the market sentiment is that of concern in the mean time.
Finish values of above 75 and beneath 25 symbolize investor sentiments of maximum greed and excessive concern, respectively.
Traditionally, tops have tended to type in periods of maximum greed, whereas bottoms have fashioned throughout extreme fear.
Due to this, some traders imagine that it’s greatest to purchase throughout the former, whereas the latter durations are greatest for promoting.
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Contrarian investing is a buying and selling method that makes use of this concept. This well-known quote from Warren Buffet encapsulates the philosophy: “Be fearful when others are grasping, and grasping when others are fearful.”
Now, here’s a chart that reveals the development within the Bitcoin concern and greed index over the previous yr:
The BTC market appears to be fearful in the mean time | Supply: Arcane Research's The Weekly Update - Week 16, 2022
As you’ll be able to see within the above graph, the Bitcoin concern and greed index is presently displaying a worth of 27, akin to a sentiment of concern.
This worth is correct on the sting of maximum concern, and the market has stayed round this worth for the previous few weeks. Throughout that interval, the indicator’s worth has additionally had some dips to excessive concern.
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The explanation behind this development could also be the truth that BTC has been caught in consolidation for some time now, displaying no actual motion.
The report means that traders appear to be anxiously ready for Bitcoin to make a transfer earlier than they take any motion.
BTC Value
On the time of writing, Bitcoin’s price floats round $39k, down 7% within the final week. Over the previous month, the crypto has misplaced 12% in worth.
The beneath chart reveals the development within the value of the coin over the past 5 days.
Appears to be like like the worth of the crypto has plunged down over the previous day | Supply: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradingView.com, Arcane Analysis