Data reveals the Bitcoin concern and greed index has continued to show low values for the third straight week because the market stays fearful.
Bitcoin Fear And Greed Index Currently Points At “Fear”
According to 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 at present 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
On the opposite hand, indicator values beneath the cutoff present that the market sentiment is that of concern in the intervening time.
End values of above 75 and beneath 25 symbolize investor sentiments of maximum greed and excessive concern, respectively.
Historically, tops have tended to type during times of maximum greed, whereas bottoms have shaped throughout excessive concern.
Because of this, some traders imagine that it’s finest to purchase throughout the former, whereas the latter intervals are finest for promoting.
Related Reading | Glassnode Data Shows A Bullish Bitcoin Crossover Has Recently Occurred
Contrarian investing is a buying and selling approach that makes use of this concept. This well-known quote from Warren Buffet encapsulates the philosophy: “Be fearful when others are greedy, and greedy when others are fearful.”
Now, right here is a chart that reveals the pattern within the Bitcoin concern and greed index over the previous 12 months:
The BTC market appears to be fearful in the intervening time | Source: Arcane Research's The Weekly Update - Week 16, 2022
As you may see within the above graph, the Bitcoin concern and greed index is at present displaying a worth of 27, corresponding to a sentiment of concern.
This worth is proper on the sting of maximum concern, and the market has stayed round this worth for the previous few weeks. During that interval, the indicator’s worth has additionally had some dips to excessive concern.
Related Reading | Bitcoin Bearish Signal: 600-Day MA Starts To Break Down
The cause behind this pattern 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 Price
At the time of writing, Bitcoin’s worth 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 pattern within the worth of the coin over the past 5 days.
Looks like the worth of the crypto has plunged down over the previous day | Source: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradingView.com, Arcane Research
