Bitcoin Investors Again Show Extreme Fear As BTC Slips To $59,000

Data shows the Bitcoin market sentiment has taken to extreme fear again as the asset’s price has seen a retrace to the $59,000 mark. Bitcoin Fear & Greed Index Suggests Market Now Extremely Fearful The “Fear & Greed Index” is an indicator created by Alternative that tells us about the average sentiment that’s currently present in the Bitcoin and wider cryptocurrency markets. The index uses the following five factors to determine the sentiment: volatility, trading volume, social media sentiment, market cap dominance, and Google Trends. It then represents this estimation using a scale that runs from 0-100 Related Reading: Bitcoin Makes Sharp Recovery, But Watch Out For Resistance At $64,000 All values of the indicator beyond the 53 mark imply that investors are showing greed, while those below 47 suggest the presence of fear in the market. The region between these two cutoffs naturally corresponds to a neutral mentality. Besides these three territories, there are also two special sentiments called the extreme fear and the extreme greed. The former of these occurs at 25 and below, while the latter at 75 and above. Now, here is what the latest value of the Bitcoin Fear & Greed Index looks like: As is visible above, the indicator has a value of 25 at the moment, meaning that the market is just inside the extreme fear zone. This is a pretty significant change from how the metric was just yesterday. The below chart shows the trend in the Bitcoin Fear & Greed Index over the past month. From the graph, it’s apparent that the Fear & Greed Index had been at a high level near the end of July, but during the bearish momentum that had followed in the BTC price, the metric’s value had also gone through a notable drop. On the 29th, the index was at a value of 74, meaning it was right on the edge of extreme greed, but by the 6th of this month, it had gone into the extreme fear zone with a value of 17. The asset’s recent recovery did lead to an improvement to the sentiment, with the index traveling back up to 48. It would appear, though, that this growth couldn’t last, as the sentiment has again declined into extreme fear, as the BTC price has seen a retrace. Related Reading: Bitcoin NVT Golden Cross Gives Bottom Signal: What Happened Last 2 Times The fact that the sentiment has worsened, however, may not actually be a bad sign for the cryptocurrency. Historically, Bitcoin has tended to move against the expectations of the majority, and the extreme regions are where this expectation is perhaps the strongest. As such, tops and bottoms have tended to form whenever the market has been inside these zones. With the Fear & Greed Index now back inside extreme fear, It’s possible that a bottom could be likely to take place. It now remains to be seen if the asset’s decline ends with this drop, or if there is more to come. BTC Price Bitcoin appears to already be showing signs of a rebound as its price has climbed back up to $59,700 from its low of under $58,000 earlier in the day. Featured image from Dall-E, Alternative.me, chart from TradingView.com

View Details

2022: The Year Of Crypto Market Fear

Data shows 2022 has been the year of fear in the crypto market as investors have continued to display poor sentiment for around eleven months now. Crypto Fear And Greed Index Currently Sits In “Extreme Fear” Territory As per the latest weekly report from Arcane Research, the cryptocurrency market could soon complete one full year of fearful sentiment. The relevant indicator here is the “fear and greed index,” which tells us about the general sentiment among investors in the crypto market. The metric uses a numeric scale that runs from zero to hundred for representing this sentiment. All values greater than fifty imply a greedy mood, while those below the threshold suggest a fearful air. Outside of these two sentiments, there also exist two subset sentiments, the “extreme fear” and the “extreme greed.” These occur at values towards the ends of the range. That is, those above 75 for the former, and those below 25 for the latter. Related Reading: How Bitcoin On-Chain Signals Present A Solid Case For A Market Bottom Now, here is a chart that shows the trend in the crypto fear and greed index over the past year: The value of the metric seems to have been moving sideways during recent weeks | Source: Arcane Research's The Weekly Update - Week 41, 2022 As you can see in the above graph, the current long spell of fear first started way back in mid-Nov of last year as the bull run died down. Since then, outside of only a few spikes to greed, the crypto fear and greed index has stayed below a value of fifty. Related Reading: SEC Rejects Another Bitcoin ETF, Exasperated Investors May Turn To Uniglo For Long-Term Crypto Gains During this period, the metric has actually spent a large amount of time in the extreme fear territory, meaning investors have had a deep bottom mentality in 2022. The latest value of the indicator has been 22, meaning that investors are extremely fearful at the moment. This isn’t much different from the last week, which observed a value of 24. The below meter displays where the current market stands compared to last week and last month. The fear and greed index points at extreme fear right now | Source: Arcane Research's The Weekly Update - Week 41, 2022 BTC Price At the time of writing, Bitcoin’s price floats around $19.2k, up 1% in the last seven days. Over the past month, the crypto has lost 1% in value. Below is a chart that shows the trend in the price of the coin during the last five days. Looks like the value of the crypto has continued to be stuck in a range over the last few days | Source: BTCUSD on TradingView Featured image from Hans-Jurgen Mager on Unsplash.com, charts from TradingView.com, Arcane Research

View Details

Two Months Of Extreme Fear Leaves Crypto In Panic, Bitcoin At $20K

Data shows the crypto market has been observing extreme fear for two months now, leaving investors in panic as Bitcoin has crashed to $20k. Crypto Fear And Greed Index Is Still Pointing To “Extreme Fear” As per the latest weekly report from Arcane Research, the cryptocurrency market has now been facing extreme fear for two months now, the longest streak in history. The “fear and greed index” is an indicator that measures the general sentiment among investors in the crypto market. The metric uses a numeric scale that runs from zero to hundred for representing this sentiment. All values greater than fifty imply that investors are greedy at the moment, while those below the threshold signify a fearful market. Edge values of above 75 and below 25 mean holder sentiments of “extreme greed” and “extreme fear,” respectively. Now, here is a chart that shows the trend in the crypto fear and greed index over the past year: Looks like the value of the indicator has been very low recently | Source: Arcane Research's The Weekly Update - Week 24, 2022 As you can see in the above graph, the crypto fear and greed index has a value of 9 right now, suggesting that the market is extremely fearful. Such low sentiment values have now persisted for two months now, making this the longest extreme fear run the market has ever seen. Related Reading | Crypto Market Crashes Further: Bitcoin (BTC) and Ethereum (ETH) Value Slumps These indicator values have stayed while the entire crypto sector has gone through a crash and a large part of the investors have gone into the red. Historically, streaks with extreme fear have been when coins like Bitcoin have tended to form bottoms (and similarly, tops have occurred during extreme greed). Because of this, some analysts believe an extremely fearful market can provide fresh buying opportunities for cryptos. Related Reading | Bitcoin “Diamond Hands” Start To Break As 1yr+ Supply Ramps Up Selling The trading technique that follows this idea is called “contrarian investing.” This famous quote from Warren Buffet encapsulates the philosophy: “be fearful when others are greedy, and greedy when others are fearful.” If the historical trend is anything to go by, the current long run of extreme fear may be when Bitcoin and other coins observe bottoms. And if so, now may be when a contrarian investor will believe to be an ideal buying point. Bitcoin Price At the time of writing, BTC’s price floats around $20.4k, down 1% in the last seven days. Over the past month, the crypto has lost 30% in value. The below chart shows the trend in the price of the coin over the last five days. The value of Bitcoin seems to have dropped down over the past day | Source: BTCUSD on TradingView Featured image from Thought Catalog on Unsplash.com, charts from TradingView.com, Arcane Research

View Details

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

Following the Bitcoin crash to $42k, the fear and greed index has declined to extreme fear values not seen since July of last year. Bitcoin Fear And Greed Index Points At “Extreme Fear” As pointed out by an analyst in a CryptoQuant post, the BTC fear and greed index has dropped to very low values. The “fear and greed index” is a crypto indicator that measures the general sentiment among investors in the market. The index uses numbers to represent the sentiment on a numeric scale that goes from zero to hundred. Values of the indicator above fifty mean that the current holder sentiment is that of greed. And values below 50 imply that the market is fearful at the moment. Index values below 25 and those above 75 fall into the “extreme” category, signifying extreme fear and extreme greed, respectively. The indicator usually remains in the greed zone during bull runs. Extreme greed values have historically signaled that a correction in the price of Bitcoin may be near, and a top could form. On the other hand, values of fear may be there during bearish trends, and extreme fear might imply that a bottom could soon form. Related Reading | Bitcoin Whales Contribute 90% Of Money Inflow of Exchanges, How Can We Follow and Make Profits? Now, here is a chart that shows the trend in the Bitcoin fear and greed index over the past year: The crypto fear and greed index seems to have sunk to extreme fear values | Source: CryptoQuant As you can see in the above graph, the indicator has now dipped to a value of 15. This is the lowest the metric has gone since July of the previous year. Related Reading | Start Of Bear Period? Current Bitcoin Trend Looks Similar To June Incidentally, the day in July when such low values occurred was also around when the Bitcoin price bottomed out. However, the quant in the post notes that this doesn’t necessarily mean that the current price has hit a bottom as well. Following the May crash, the months of May and June also observed similar extreme fear sentiments multiple times. So, it’s rather possible that the current low values of the indicator may persist for a while, just like back then, before the price finds its way back up. BTC Price At the time of writing, Bitcoin’s price floats around $42.4k, down 12% in the last seven days. Over the past month, the crypto has lost 16% in value. The below chart shows the trend in the price of BTC over the last five days. After the crash down to $42k a few days back, BTC's price further plunged down to $41k yesterday | Source: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

View Details

Crypto Market Bloodbath Creates Largest Stretch Of Fear Since April Peak

As the downtrend in the crypto market continues, so does extreme fear. What’s inspiring the sell-off? Is it Omicron? Or is it Evergrande? Is it a conspiracy? Or is it the holidays? All those questions and more have had the Fear and Greed Index pointing left for a month straight. What does this mean? Where do we go from here? That’s what we’re here to explore.  Related Reading | Blood In The Streets: Crypto Market Becomes Fearful As Bitcoin Dives But first, let’s talk about the Fear and Greed Index. One of the many Bitcoin indicators, it measures the market’s general sentiment at the moment. Zero is extreme Fear. A hundred is extreme Greed. And the indicator oscillates between those two at any given time. It’s been said that the crypto market is very emotional. The Fear and Greed Index is there to keep investors from making irrational decisions based on sentiment alone.  Fear And Greed Index shows Extreme Fear | Source: Arcane Research’s The Weekly Update What’s The Fear And Greed Index Saying Now? According to Arcane Research’s The Weekly Update, fear has settled in: “The Fear and Greed Index has now signaled “Fear” or “Extreme Fear” for almost one month straight. The last time we saw such a prolonged fearful market sentiment was at the beginning of the summer when the market sentiment was fearful for more than two months straight. With the sustained consolidation of bitcoin, the late autumn euphoria has dampened, and the overall sentiment seems very negative at the moment.” The report also says that, “during steady sell-offs, bitcoin tends to outperform the overall crypto market.” And this time was no exception, BTC “outperformed all indexes so far in December, seeing a negative return of -18% after a relatively flat second week of trading this month.” On the other hand, “the Small Cap index has seen a loss of nearly a third of its value in December.“ What does this mean in general? “The bitcoin dominance has risen by 1.13% in the last week. This is the third time we’re seeing bitcoin dominance bottom at 40% in 2021. The last two times were May 19th and Sep 13th. It seems that the 40% threshold is a difficult area for alts to sustain” BTC price chart for 12/15/2021 on Eightcap | Source: BTC/USD on TradingView.com What Can We Expect In The Future? To get our dose of technical and on-chain analysis, let’s give the mic to this month’s Fear & Greed Newsletter: “A major factor here is the cycle support band. We cannot ignore the fact that Bitcoin had just closed 2 consecutive weeks below the market support band. Historically, this meant that we’d see a longer consolidation phase before we could have a true reversal in the trend. The takeaway here is this, as long as Bitcoin closes the week below the cycle support band, we shouldn’t expect any major breakout in price to take place.” Every dog has its day, though. A week ago, analyzing a very similar market sentiment, NewsBTC informed you: “A “Fear and Greed” Index on Extreme Fear levels, according to certain analysts, has historically preceded crypto market local bottoms. However, a run into new highs could see an obstacle as the macro-economic outlook turn complex.” Related Reading | Bitcoin Price Bloodbath: Is El Salvador A “Sell The News” Event? It’s also important to remember that only two months ago, we were in a similar situation and the sentiment did a complete 180 in a matter of weeks.  “The indicator dipped all the way down to extreme fear on 30th September, but in under two weeks the sentiment has already rebounded back to extreme greed. The report notes that this shows how fast the sentiment can change among the crypto market.” With that being said, and a disclaimer that this isn’t financial advice, in a situation like this there’s only one thing we could say… hodl the line!  Featured Image: PublicDomainPictures on Pixabay| Charts by TradingView

View Details

Crypto Flipsider News – Bitcoin Sell-Off Ignites Extreme Fear, LUNA Reaches New ATH, $196 Million Bitmart Hack, Metaverse Tops NFT Sales, Binance to Relaunch in the U.K.

Read Monday's breaking news in the daily digest

Continue reading Crypto Flipsider News – Bitcoin Sell-Off Ignites Extreme Fear, LUNA Reaches New ATH, $196 Million Bitmart Hack, Metaverse Tops NFT Sales, Binance to Relaunch in the U.K. at DailyCoin.com.

View Details