Data exhibits the Bitcoin worry and greed index has now reached the best degree because the peak in November as the worth of the crypto rallies up.
Bitcoin Fear And Greed Index Now Points At “Greed”
As per the newest weekly report from Arcane Research, the BTC worry 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 normal market sentiment amongst Bitcoin buyers.
The metric makes use of a numeric scale that travels from one to hundred for representing this sentiment. All values above fifty signify that buyers are grasping in the intervening time. While these beneath the cutoff counsel a fearful market.
Values above 75 and beneath 25, that is, the values towards the ends of the vary, signify excessive greed and excessive worry, respectively.
Now, right here is a chart that exhibits the pattern within the Bitcoin worry and greed index over the previous 12 months:
Looks like the worth of the indicator has surged up lately | Source: Arcane Research's The Weekly Update - Week 12, 2022
As you’ll be able to see within the above graph, the Bitcoin worry and greed index has sharply risen over the previous week. The indicator now has a price of 56, which exhibits the market is getting grasping.
This worth of the metric is now greater than in another interval within the 12 months 2022 up to now, and is the best because the peak in early November of final 12 months.
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Historically, Bitcoin peaks have tended to occur whereas the sentiment is that of maximum greed, and bottoms have fashioned in periods of maximum worry.
There is a well-liked buying and selling approach referred to as “contrarian investing” that makes use of this reality. Traders following this technique assume that the very best time to purchase is throughout excessive worry, whereas excessive greed is when one ought to promote.
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This well-known quote by Warren Buffet sums up this philosophy: “Be fearful when others are greedy, and greedy when others are fearful.”
So, following the road of pondering of contrarian buyers, the present market sentiment turning grasping could also be an indication that you need to now begin getting fearful as a substitute.
At the time of writing, Bitcoin’s value 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 exhibits the pattern within the value of the coin over the past 5 days.
The value of Bitcoin appears to have surged up over the previous few days | Source: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradingView.com, Arcane Research