Two Months Of Extreme Fear Leaves Crypto In Panic, Bitcoin At $20K
23 June 2022 - 5:00AM
NEWSBTC
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
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