Data exhibits the Bitcoin market has been caught in a state of maximum concern because the fifth of May, that means this run of backside sentiment has gone on for greater than a full month now.
Bitcoin Fear And Greed Index Continues To Point At An Extremely Fearful Market
According to the most recent weekly report from Arcane Research, the crypto market is at present going by its longest run of maximum concern because the COVID crash again in 2020.
The “fear and greed index” is an indicator that tells us in regards to the basic investor sentiment within the Bitcoin and wider crypto market.
The metric makes use of a numeric scale that goes from one to hundred for displaying this sentiment. When the worth of the index is lower than fifty, it means buyers are fearful in the intervening time.
Related Reading | Glassnode: Bitcoin Long-Term Holders Own 90% Of Supply In Profit
On the opposite hand, values of the indicator above the brink indicate that buyers at present share a sentiment of greed.
Values in the direction of the top of the vary of beneath 25 and above 75 point out sentiments of extreme fear and excessive greed, respectively.
Now, here’s a chart that exhibits the development within the Bitcoin concern and greed index over the previous yr:
The worth of the metric appears to have been very low lately | Source: Arcane Research's The Weekly Update - Week 22, 2022
As you possibly can see within the above graph, the Bitcoin concern and greed index is displaying a price of 15 proper now, suggesting that the final sentiment is that of maximum concern.
These low values of the metric have now been there for greater than a month now. Such a protracted streak final occurred following the COVID crash two years in the past. Then, the run lasted for 48 consecutive days earlier than the sentiment noticed any enchancment.
Historically, bottoms have tended to kind during times of maximum concern, whereas tops have occurred throughout excessive greed.
Because of this, some buyers consider the previous intervals present very best shopping for alternatives for Bitcoin, whereas the latter might be becoming promoting factors.
The buying and selling approach that follows this concept is known as contrarian investing. Warren Buffet’s well-known quote encapsulates it greatest:
Be fearful when others are grasping, and grasping when others are fearful.
If this philosophy is something to go by, then the present sentiment might imply now might be the time to purchase Bitcoin.
At the second, it’s unclear how lengthy this streak of maximum concern will final. It might be as lengthy or longer than the final one, or the sentiment might quickly see an uplift.
At the time of writing, Bitcoin’s price floats round $30.4k, down 3% up to now week.
Looks like the worth of BTC has jumped again above $30k | Source: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradngView.com, Arcane Research