Bitcoin Fear And Greed Index Has Dipped To Lows Not Seen Since July

Following the Bitcoin crash to $42k, the worry and greed index has declined to excessive worry values not seen since July of final yr.

Bitcoin Fear And Greed Index Points At “Extreme Fear”

As identified by an analyst in a CryptoQuant post, the BTC worry and greed index has dropped to very low values.

The “fear and greed index” is a crypto indicator that measures the final sentiment amongst buyers within the market.

The index makes use of numbers to signify the sentiment on a numeric scale that goes from zero to hundred. Values of the indicator above fifty imply that the present holder sentiment is that of greed.

And values under 50 indicate that the market is fearful in the intervening time. Index values under 25 and people above 75 fall into the “extreme” class, signifying excessive worry and excessive greed, respectively.

The indicator normally stays within the greed zone throughout bull runs. Extreme greed values have traditionally signaled {that a} correction within the price of Bitcoin could also be close to, and a high may kind.

On the opposite hand, values of worry could also be there throughout bearish tendencies, and excessive worry may indicate {that a} backside may quickly kind.

Related Reading | Bitcoin Whales Contribute 90% Of Money Inflow of Exchanges, How Can We Follow and Make Profits?

Now, here’s a chart that reveals the development within the Bitcoin worry and greed index over the previous yr:

Bitcoin Fear And Greed Index

The crypto worry and greed index appears to have sunk to excessive worry values | Source: CryptoQuant

As you possibly can see within the above graph, the indicator has now dipped to a price of 15. This is the bottom the metric has gone since July of the earlier yr.

Related Reading | Start Of Bear Period? Current Bitcoin Trend Looks Similar To June

Incidentally, the day in July when such low values occurred was additionally round when the Bitcoin price bottomed out. However, the quant within the put up notes that this doesn’t essentially imply that the present price has hit a backside as nicely.

Following the May crash, the months of May and June additionally noticed comparable excessive worry sentiments a number of instances.

So, it’s slightly attainable that the present low values of the indicator might persist for some time, identical to again then, earlier than the price finds its means again up.

BTC Price

At the time of writing, Bitcoin’s price floats round $42.4k, down 12% within the final seven days. Over the previous month, the crypto has misplaced 16% in worth.

The under chart reveals the development within the price of BTC over the past 5 days.

Bitcoin Price Chart

After the crash all the way down to $42k just a few days again, BTC's price additional plunged all the way down to $41k yesterday | Source: BTCUSD on TradingView
Featured picture from, charts from,

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