Information reveals the Bitcoin concern and greed index has now reached the very best degree for the reason that peak in November as the worth of the crypto rallies up.
Bitcoin Concern And Greed Index Now Factors At “Greed”
As per the most recent weekly report from Arcane Research, the BTC concern and greed index has surged to values of greed sentiment this week.
The “fear and greed index” is an indicator that tells us concerning the present common market sentiment amongst Bitcoin traders.
The metric makes use of a numeric scale that travels from one to hundred for representing this sentiment. All values above fifty signify that traders are grasping for the time being. Whereas these beneath the cutoff counsel a fearful market.
Values above 75 and beneath 25, that’s, the values towards the ends of the vary, characterize excessive greed and extreme fear, respectively.
Now, here’s a chart that reveals the development within the Bitcoin concern and greed index over the previous 12 months:
Appears like the worth of the indicator has surged up just lately | Supply: Arcane Research's The Weekly Update - Week 12, 2022
As you possibly can see within the above graph, the Bitcoin concern and greed index has sharply risen over the previous week. The indicator now has a price of 56, which reveals the market is getting grasping.
This worth of the metric is now greater than in some other interval within the 12 months 2022 up to now, and is the very best for the reason that peak in early November of final 12 months.
Associated Studying | Glassnode’s RHODL Ratio May Suggest Bitcoin Market Is Near Capitulation
Traditionally, Bitcoin peaks have tended to occur whereas the sentiment is that of utmost greed, and bottoms have shaped in periods of utmost concern.
There’s a common buying and selling approach known as “contrarian investing” that makes use of this reality. Merchants following this system assume that the perfect time to purchase is throughout excessive concern, whereas excessive greed is when one ought to promote.
Associated Studying | Bitcoin Weekly Momentum Flips Bullish For First Time In 2022: What Data Says
This well-known quote by Warren Buffet sums up this philosophy: “Be fearful when others are grasping, and grasping when others are fearful.”
So, following the road of pondering of contrarian traders, the present market sentiment turning grasping could also be an indication that it’s best to now begin getting fearful as an alternative.
BTC Worth
On the time of writing, Bitcoin’s price floats round $47.3k, up 12% within the final seven days. Over the previous month, the crypto has gained 26% in worth.
The beneath chart reveals the development within the value of the coin over the past 5 days.
The worth of Bitcoin appears to have surged up over the previous few days | Supply: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradingView.com, Arcane Analysis