Data exhibits the Bitcoin market has been caught in a state of maximum worry because the fifth of May, which means this run of backside sentiment has gone on for greater than a full month now.
Bitcoin Fear And Greed Index Continues To Point At An Extremely Fearful Market
According to the most recent weekly report from Arcane Research, the crypto market is presently going by means of its longest run of maximum worry because the COVID crash again in 2020.
The “fear and greed index” is an indicator that tells us in regards to the common investor sentiment within the Bitcoin and wider crypto market.
The metric makes use of a numeric scale that goes from one to hundred for displaying this sentiment. When the worth of the index is lower than fifty, it means buyers are fearful in the intervening time.
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On the opposite hand, values of the indicator above the edge indicate that buyers presently share a sentiment of greed.
Values in direction of the top of the vary of beneath 25 and above 75 point out sentiments of maximum worry and excessive greed, respectively.
Now, right here is a chart that exhibits the development within the Bitcoin worry and greed index over the previous 12 months:
The worth of the metric appears to have been very low not too long ago | Source: Arcane Research's The Weekly Update - Week 22, 2022
As you may see within the above graph, the Bitcoin worry and greed index is exhibiting a worth of 15 proper now, suggesting that the final sentiment is that of maximum worry.
These low values of the metric have now been there for greater than a month now. Such an extended streak final occurred following the COVID crash two years in the past. Then, the run lasted for 48 consecutive days earlier than the sentiment noticed any enchancment.
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Historically, bottoms have tended to type during times of maximum worry, whereas tops have occurred throughout excessive greed.
Because of this, some buyers imagine the previous intervals present supreme shopping for alternatives for Bitcoin, whereas the latter could possibly be becoming promoting factors.
The buying and selling method that follows this concept is known as contrarian investing. Warren Buffet’s well-known quote encapsulates it finest:
Be fearful when others are grasping, and grasping when others are fearful.
If this philosophy is something to go by, then the present sentiment might imply now could possibly be the time to purchase Bitcoin.
At the second, it’s unclear how lengthy this streak of maximum worry will final. It could possibly be as lengthy or longer than the final one, or the sentiment might quickly see an uplift.
At the time of writing, Bitcoin’s worth floats round $30.4k, down 3% up to now week.
Looks like the worth of BTC has jumped again above $30k | Source: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradngView.com, Arcane Research