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 Concern And Greed Index Factors At “Excessive Concern”
As identified by an analyst in a CryptoQuant post, the BTC worry and greed index has dropped to very low values.
The “worry and greed index” is a crypto indicator that measures the overall sentiment amongst buyers available in the market.
The index makes use of numbers to symbolize 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 beneath 50 suggest that the market is fearful in the mean time. Index values beneath 25 and people above 75 fall into the “excessive” class, signifying excessive worry and excessive greed, respectively.
The indicator often stays within the greed zone throughout bull runs. Excessive greed values have traditionally signaled {that a} correction within the value of Bitcoin could also be close to, and a high may kind.
Then again, values of worry could also be there throughout bearish traits, and excessive worry would possibly suggest {that a} backside may quickly kind.
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Now, here’s a chart that reveals the development within the Bitcoin worry and greed index over the previous yr:
The crypto worry and greed index appears to have sunk to excessive worry values | Supply: CryptoQuant
As you possibly can see within the above graph, the indicator has now dipped to a price of 15. That is the bottom the metric has gone since July of the earlier yr.
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By the way, the day in July when such low values occurred was additionally round when the Bitcoin value bottomed out. Nonetheless, the quant within the submit notes that this doesn’t essentially imply that the present value has hit a backside as properly.
Following the Could crash, the months of Could and June additionally noticed related excessive worry sentiments a number of instances.
So, it’s slightly potential that the present low values of the indicator might persist for some time, identical to again then, earlier than the worth finds its means again up.
BTC Value
On the time of writing, Bitcoin’s value floats round $42.4k, down 12% within the final seven days. Over the previous month, the crypto has misplaced 16% in worth.
The beneath chart reveals the development within the value of BTC during the last 5 days.
After the crash all the way down to $42k a couple of days again, BTC's value additional plunged all the way down to $41k yesterday | Supply: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradingView.com, CryptoQuant.com