Information reveals the Bitcoin worry and greed index has continued to show low values for the third straight week because the market stays fearful.
Bitcoin Worry And Greed Index At the moment Factors At “Worry”
In accordance with the newest weekly report from Arcane Research, the BTC market has now remained fearful for the third consecutive week.
The “fear and greed index” is an indicator that tells us what the final sentiment amongst traders within the Bitcoin market at the moment is.
The metric makes use of a numeric scale that runs from one to hundred for representing this sentiment. All values above fifty signify that the market is grasping proper now
Alternatively, indicator values under the cutoff present that the market sentiment is that of worry in the intervening time.
Finish values of above 75 and under 25 symbolize investor sentiments of maximum greed and excessive worry, respectively.
Traditionally, tops have tended to type in periods of maximum greed, whereas bottoms have shaped throughout extreme fear.
Due to this, some traders imagine that it’s finest to purchase throughout the former, whereas the latter durations are finest for promoting.
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Contrarian investing is a buying and selling method that makes use of this concept. This well-known quote from Warren Buffet encapsulates the philosophy: “Be fearful when others are grasping, and grasping when others are fearful.”
Now, here’s a chart that reveals the pattern within the Bitcoin worry and greed index over the previous 12 months:
The BTC market appears to be fearful in the intervening time | Supply: Arcane Research's The Weekly Update - Week 16, 2022
As you possibly can see within the above graph, the Bitcoin worry and greed index is at the moment exhibiting a price of 27, similar to a sentiment of worry.
This worth is correct on the sting of maximum worry, and the market has stayed round this worth for the previous few weeks. Throughout that interval, the indicator’s worth has additionally had some dips to excessive worry.
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The explanation behind this pattern could also be the truth that BTC has been caught in consolidation for some time now, exhibiting no actual motion.
The report means that traders appear to be anxiously ready for Bitcoin to make a transfer earlier than they take any motion.
On the time of writing, Bitcoin’s price floats round $39k, down 7% within the final week. Over the previous month, the crypto has misplaced 12% in worth.
The under chart reveals the pattern within the worth of the coin during the last 5 days.
Seems like the worth of the crypto has plunged down over the previous day | Supply: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradingView.com, Arcane Analysis