Image default
Bitcoin

This Overlooked Indicator Makes Bitcoin (BTC) Look Attractive at Current Levels: Crypto Analyst Benjamin Cowen

Widely adopted crypto analyst Benjamin Cowen has his eye on an neglected indicator that implies Bitcoin (BTC) has considerably extra upside potential quickly.

In a brand new technique session, Cowen tells his 722,000 YouTube subscribers in regards to the Fear and Greed Index, which measures sentiment within the crypto markets.

Traditionally, merchants will take a extra bullish stance when the index is flashing most worry, and a cautious outlook when it factors to greed.

Cowen breaks the index down with a 90-day easy transferring common (SMA) to level out historic patterns. Based on his interpretations, the analyst says that after the 90-day SMA on the Fear and Greed Index dips beneath 30, BTC normally bottoms out and ignites rallies.

“What it does show, is that when the 90-day moving average is say, below 30… As long as you have the right outlook, as long you’re not thinking it has to go up tomorrow – because if you find yourself in some type of situation like let’s say 2018, it could still be a few months away – but historically speaking, when the 90-day moving average of the Fear and Greed Index is below 30, it tends to be a fairly attractive area to sort of move into the market.”

Source: Benjamin Cowen/YouTube

The intently tracked analyst says that traditionally, the herd usually will get the route of the markets mistaken, highlighting the utility of the index. He notes that for a while now, the index’s 90-day SMA has been beneath its key degree.

“Overwhelmingly, it looks like most individuals simply wish to purchase when the market is bullish, however actually, if historical past is any indication, shopping for when the market is bearish appears to work out so much higher, as a result of if you’re shopping for when the market is bearish, you’re shopping for when most individuals don’t wish to, and usually the herd will get issues mistaken over an extended time-frame.

So it will make sense on the whole if historical past is any indication to DCA [dollar cost average] Bitcoin when the market is bearish and watch for it to show again bullish, which traditionally at all times has performed…

Looking at the 90-day transferring common, you possibly can see that it’s truly been beneath that 30 threshold, basically since mid-February, and we’re nonetheless beneath it, even now…

Again it’s a lagging indicator so it’s not going to work out completely. If the price of Bitcoin have been to come back again personal, I think about the Fear and Greed Index might nonetheless hang around beneath 30 for some time.”

O

Check Price Action

Don’t Miss a Beat – Subscribe to get crypto e-mail alerts delivered on to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp
Check Latest News Headlines

 

Disclaimer: Opinions expressed at The Daily Hodl are usually not funding recommendation. Investors ought to do their due diligence earlier than making any high-risk investments in Bitcoin, cryptocurrency or digital belongings. Please be suggested that your transfers and trades are at your individual threat, and any loses you might incur are your duty. The Daily Hodl doesn’t advocate the shopping for or promoting of any cryptocurrencies or digital belongings, neither is The Daily Hodl an funding advisor. Please observe that The Daily Hodl participates in online marketing.

Featured Image: Shutterstock/Andrea Danti

Related posts

Veteran Trader Tone Vays Updates Outlook on Bitcoin After Top Crypto Breaks Above $42,000

Crypto Advisor

This Overlooked Metric Says Smart Money Not Betting on Big Bitcoin (BTC) Collapse, According to InvestAnswers

Crypto Advisor

Bitcoin Bottom In? Veteran Trader Peter Brandt Looks at Capitulation History of BTC

Crypto Advisor

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

bitcoin
Bitcoin (BTC) $ 19,229.50 0.79%
ethereum
Ethereum (ETH) $ 1,319.43 0.89%
tether
Tether (USDT) $ 1.00 0.26%
usd-coin
USD Coin (USDC) $ 1.00 0.31%
bnb
BNB (BNB) $ 275.40 1.26%
binance-usd
Binance USD (BUSD) $ 1.00 0.07%
cardano
Cardano (ADA) $ 0.448059 2.83%
xrp
XRP (XRP) $ 0.475548 3.30%
polkadot
Polkadot (DOT) $ 6.39 1.13%
solana
Solana (SOL) $ 33.08 2.05%
shiba-inu
Shiba Inu (SHIB) $ 0.000011 2.46%
dogecoin
Dogecoin (DOGE) $ 0.061435 2.46%
staked-ether
Lido Staked Ether (STETH) $ 1,314.57 0.71%
matic-network
Polygon (MATIC) $ 0.751174 1.51%
tron
TRON (TRX) $ 0.059867 0.41%
dai
Dai (DAI) $ 1.00 0.41%
avalanche-2
Avalanche (AVAX) $ 17.42 2.00%
ethereum-classic
Ethereum Classic (ETC) $ 28.33 2.94%
leo-token
LEO Token (LEO) $ 4.21 1.77%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 19,231.95 0.87%
uniswap
Uniswap (UNI) $ 5.76 3.05%
litecoin
Litecoin (LTC) $ 53.43 1.33%
cosmos
Cosmos Hub (ATOM) $ 14.43 4.57%
okb
OKB (OKB) $ 15.29 0.87%
ftx-token
FTX (FTT) $ 23.86 0.11%
terra-luna
Terra Luna Classic (LUNC) $ 0.000205 9.63%
near
NEAR Protocol (NEAR) $ 3.69 1.27%
chainlink
Chainlink (LINK) $ 7.76 3.04%
crypto-com-chain
Cronos (CRO) $ 0.114031 3.24%
monero
Monero (XMR) $ 143.89 0.35%
stellar
Stellar (XLM) $ 0.116734 2.48%
bitcoin-cash
Bitcoin Cash (BCH) $ 117.35 0.17%
algorand
Algorand (ALGO) $ 0.372667 4.58%
flow
Flow (FLOW) $ 1.64 2.95%
vechain
VeChain (VET) $ 0.022657 2.06%
eos
EOS (EOS) $ 1.19 1.97%
internet-computer
Internet Computer (ICP) $ 6.04 0.08%
filecoin
Filecoin (FIL) $ 5.71 1.33%
chain-2
Chain (XCN) $ 0.074885 2.52%
frax
Frax (FRAX) $ 1.00 0.22%
hedera-hashgraph
Hedera (HBAR) $ 0.060175 2.42%
decentraland
Decentraland (MANA) $ 0.701432 1.60%
apecoin
ApeCoin (APE) $ 5.60 1.75%
the-sandbox
The Sandbox (SAND) $ 0.857028 3.76%
tezos
Tezos (XTZ) $ 1.47 2.09%
quant-network
Quant (QNT) $ 119.58 3.22%
axie-infinity
Axie Infinity (AXS) $ 12.46 3.04%
aave
Aave (AAVE) $ 75.22 2.15%
lido-dao
Lido DAO (LDO) $ 1.61 6.00%
elrond-erd-2
Elrond (EGLD) $ 46.72 3.53%
theta-token
Theta Network (THETA) $ 1.09 2.71%
true-usd
TrueUSD (TUSD) $ 1.00 0.44%
chiliz
Chiliz (CHZ) $ 0.253612 5.97%
bitcoin-sv
Bitcoin SV (BSV) $ 51.74 4.43%
compound-usd-coin
cUSDC (CUSDC) $ 0.022654 0.04%
paxos-standard
Pax Dollar (USDP) $ 1.00 0.32%
kucoin-shares
KuCoin (KCS) $ 8.99 0.32%
bittorrent
BitTorrent (BTT) $ 0.00000078873332 0.66%
ecash
eCash (XEC) $ 0.00004 2.21%
the-graph
The Graph (GRT) $ 0.101535 5.27%
iota
IOTA (MIOTA) $ 0.301745 7.35%
zcash
Zcash (ZEC) $ 58.07 3.94%
huobi-btc
Huobi BTC (HBTC) $ 19,227.01 0.09%
usdd
USDD (USDD) $ 1.00 0.22%
huobi-token
Huobi (HT) $ 4.45 1.19%
evmos
Evmos (EVMOS) $ 1.98 4.95%
havven
Synthetix Network (SNX) $ 2.31 5.33%
cdai
cDAI (CDAI) $ 0.022047 0.16%
maker
Maker (MKR) $ 692.86 0.48%
bitdao
BitDAO (BIT) $ 0.477883 2.35%
klay-token
Klaytn (KLAY) $ 0.201436 1.43%
neutrino
Neutrino USD (USDN) $ 0.954371 0.47%
fantom
Fantom (FTM) $ 0.228067 1.00%
compound-ether
cETH (CETH) $ 26.49 0.28%
neo
NEO (NEO) $ 8.33 2.12%
helium
Helium (HNT) $ 4.64 2.95%
gatechain-token
Gate (GT) $ 4.23 0.24%
defichain
DeFiChain (DFI) $ 0.77828 2.28%
radix
Radix (XRD) $ 0.059847 0.59%
celsius-degree-token
Celsius Network (CEL) $ 1.45 4.87%
pax-gold
PAX Gold (PAXG) $ 1,642.53 0.41%
pancakeswap-token
PancakeSwap (CAKE) $ 4.61 0.68%
thorchain
THORChain (RUNE) $ 1.61 2.58%
osmosis
Osmosis (OSMO) $ 1.22 2.17%
zilliqa
Zilliqa (ZIL) $ 0.031621 2.84%
enjincoin
Enjin Coin (ENJ) $ 0.46516 1.72%
nexo
NEXO (NEXO) $ 0.935676 1.09%
arweave
Arweave (AR) $ 9.52 3.61%