{"id":522592,"date":"2023-03-10T11:57:25","date_gmt":"2023-03-10T11:57:25","guid":{"rendered":"https:\/\/wncen.com\/?p=522592"},"modified":"2024-06-11T06:53:11","modified_gmt":"2024-06-11T06:53:11","slug":"buy-signal-bitcoin-investor-sentiment-falls-to-lowest-level-in-two-months","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/buy-signal-bitcoin-investor-sentiment-falls-to-lowest-level-in-two-months\/","title":{"rendered":"Buy Signal? Bitcoin Investor Sentiment Falls To Lowest Level In Two Months"},"content":{"rendered":"

Bitcoin and the broader crypto market took a hit over the last day, leading to bitcoin falling below $20,000 for the first time in two months. This decline was followed by a tremendous plunge in investor sentiment. The sharp decline saw sentiment drop to negative levels not seen since January.<\/p>\n

Crypto Fear & Greed Index Sitting In Fear<\/h2>\n

For the last two months, the market was able to recover to as high as $25,000 at one point, leading to a recovery in investor sentiment. As a result, the Crypto Fear & Greed Index moved into the greed territory briefly but all of this has come to an end with the most recent plunge.<\/p>\n

Related Reading: Bitcoin Dealt Another Round Of Blows, Is The Bear Market Back?<\/a><\/div>\n

The index saw a 10-point drop in a single day, one of the sharpest declines recorded in the last year. Sitting at a score of 34, it shows that investors have once again turned very bearish. The result of this is panic sell-offs as participants in the space try to avoid further losses.<\/p>\n

\"Bitcoin<\/p>\n

Crypto Fear & Greed Index drops to 2-month low | Source: alternative.me<\/a><\/pre>\n
It is a long way from last month\u2019s greedy market which peaked at 62 on the index. The last time the market saw such a sharp decline was in May 2022 following the Terra (LUNA) network collapse.\u00a0<\/span><\/p>\n
Is The Bitcoin Bear Market Back?<\/h2>\n
Looking at historical data, it is possible to deduce that the bear trend will continue from here. As mentioned above, the last time the Crypto Fear & Greed Index saw such a sharp decline was when LUNA collapse, triggering a decline in the price of bitcoin from above $30,000 to below $20,000.<\/p>\n
If this happens to be a repeat of the previous trend, then bitcoin could continue declining. It is even possible to see another decline below its current cycle low of $15,500. If this happens, the market bottom may be farther away than expected.<\/p>\n
Interestingly, net flows for the past day have come out to be almost neutral for the top digital assets in the space. According to a Glassnode report, bitcoin exchange inflows came out to $782.9 million versus $796.6 million in outflows leading to negative $13.7 million in net flows. Ethereum recorded the same trend with net flows coming out to negative $29.6 million after all was said and done.<\/p>\n
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\ud83d\udcca Daily On-Chain Exchange Flow#Bitcoin<\/a> $BTC<\/a>
\u27a1\ufe0f  $782.9M in
\u2b05\ufe0f  $796.6M out
\ud83d\udcc9 Net flow: -$13.7M#Ethereum<\/a> $ETH<\/a>
\u27a1\ufe0f  $498.2M in
\u2b05\ufe0f  $527.7M out
\ud83d\udcc9 Net flow: -$29.6M#Tether<\/a> (ERC20) $USDT<\/a>
\u27a1\ufe0f  $795.4M in
\u2b05\ufe0f  $852.6M out
\ud83d\udcc9 Net flow: -$57.2Mhttps:\/\/t.co\/dk2HbGwhVw<\/a><\/p>\n
— glassnode alerts (@glassnodealerts) March 10, 2023<\/a><\/p><\/blockquote>\n