Fickle Bitcoin Market Surges From Fear To Greed In A Flash
15 October 2021 - 6:00AM
NEWSBTC
The Bitcoin fear and greed index has started to quickly change to
extreme greed as the crypto continues to rally up. Bitcoin Fear And
Greed Needle Starts Pointing At Extreme Greed As per the latest
weekly report from Arcane Research, the fear and greed index
quickly turned to extreme greed values last week. The “fear and
greed index” is a Bitcoin indicator that shows the general crypto
market sentiment at the time. The metric uses a numerical scale of
one to hundred for displaying the different sentiments. Values
close to zero fall under the “extreme fear” category while values
at the other end imply “extreme greed.” When the indicator shows
neither too large, nor too low values, the sentiment falls under
either “fear” or “greed” depending on which side around 50 the
value is. Now, here is a chart that shows how the indicator’s value
has changed over the years for Bitcoin: Looks like the crypto
market has quickly turned greedy | Source: The Arcane Research
Weekly Update - Week 40 As the above graph shows, the sentiment had
turned greedy last week after a fearful September, and the values
are now entering into the extreme greed category. While the month
of September had some moves up, it also had several price crashes,
and that’s why the sentiment was that of fear for the most part.
Related Reading | TA: Ethereum Follows Bitcoin, Why ETH Could
Surge Towards $4K 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.
Right now, BTC is showing some strong momentum upwards as the coin
broke $58k for the first time since May today. An on-chain
indicator shows that both the long-term holders and the short-term
holders are in profit right now so it’s not a surprise that the
market has started turning greedy. Related Reading | Why
Bitcoin Could Be Far From $100,000, Says Fidelity Analyst BTC Price
At the time of writing, Bitcoin’s price floats around $57.2k, up 6%
in the last seven days. Over the last month, the crypto has gained
22% in value. The below chart shows the trend in the price of the
coin over the last five days: Bitcoin's price shows a lot of
volatility while keeping up an overall upwards trend | Source:
BTCUSD on TradingView Usually, when the crypto market sentiment
reaches the extreme greed territory, the market observes a
correction at least in the short term. The BTC price did have a
minor dip yesterday and the fear and greed values have left the
extreme greed territory today as the indicator now points at greed.
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