The data show that the Bitcoin Fear & Greed index has dropped to the lowest level from Bess 2022 after the latest BTC price failure.
Bitcoin Fear & Greed Index currently has only 10
“The indicator of fear and greed” refers to the indicator created by Alternative This tells us about the average sentiments present among traders in Bitcoin markets and wider cryptocurrencies.
The indicator uses a numerical scale operating from scratch to a hundred to represent a market mentality. There are five zones in which this value may be: extreme fear (25 and below), fear (26 to 46), neutral (47 to 53), greed (54 to 75) and extreme greed (76 and more).
Here’s how an index of fear and greed appears now:
Looks like the value of the metric is 10 at the moment | Source: Alternative
As you can see above, the Bitcoin Fear & Greed index is currently sitting at the age of 10, which means that the sentiment is deep in the extreme territory of fear. Just a few days ago, the mood among traders was significantly different, because instead the index was in the neutral zone.
The reason for this drastic change in sentiments is a disaster, which the price of cryptocurrency has undergone over the past few days.
The trend in the indicator over the past twelve months | Source: Alternative
After the latest decrease in the Fear & Greed index, its value reached the lowest point from mid -2022, when Bitcoin was deep in the last bear market. In this way, it seems that Bull falling in this way has dealt with the morale of investors.
However, if the story is to refer, it may not be such a bad development of cryptocurrency. Indeed, BTC often created the bottom when the sentiment fell into extreme fear.
A similar effect was also witnessed by the extreme side of greed, where the coin usually reached the peak. The peak from last month also occurred when the indicator was in this region.
Therefore, it seems that Bitcoin tends to move in the opposite direction to what most of the crowd expects. Supporters of commercial technology are called a counteracting investment, they operate this fact until their movements.
These traders buy when the average investor feels afraid and sells when the wave of euphoria pulsates on the market. The notable quote by Warren Buffet also summarizes this idea: “Be fearful when others are greedy and greedy when others are afraid.”
Because the Bitcoin Fear & Greed index fell to a very low level, perhaps conflicting traders would consider buying resources. However, it turns out whether BTC would be able to form the bottom on these values, or whether the sentiment will have to degrade even more before that happens.
BTC price
At the time of writing, Bitcoin sails about USD 84,700, which is almost 14% in the last seven days.
Looks like the price of the coin has seen a further drop in the past day | Source: BTCUSDT on TradingView
A distinguished painting with Dall-E, Alternative.me, chart from tradingview.com
