Bitcoin Fear And Greed Index Points At “Extreme Fear”
As pointed out by an analyst in a CryptoQuant , 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.
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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: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.
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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:
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com