Bitcoin Observes Longest Stretch Of Extreme Fear Since April 2020

Data shows utmost fearfulness sentiment successful the Bitcoin marketplace has continued for astir a period now, the longest agelong since April 2020.

Bitcoin Market Sentiment Remains In Extreme Fear Territory

As per the latest play study from Arcane Research, the crypto fearfulness and greed scale has continued to constituent astatine utmost fearfulness this week.

The “fear and greed index” is an indicator that measures the wide marketplace sentiment among Bitcoin and crypto investors.

The metric uses a numeric standard that runs from 1 to 100 for representing this sentiment. All values supra “50” signify greed successful the market, portion those beneath the threshold suggest fearfulness among investors.

The utmost values of supra 75 and beneath 25 connote sentiments of “extreme fear” and “extreme greed,” respectively.

Historically, bottoms successful the terms of Bitcoin person tended to signifier during periods of utmost fear. On the different hand, the crypto has observed tops during stretches of utmost greed.

Some investors deliberation that due to the fact that of this, it’s champion to bargain during utmost fear, portion utmost greed is perfect for selling.

Related Reading | Bitcoin LTHs Realized Significant Losses Recently, Final Capitulation Here?

“Contrarian investing” follows this approach. Warren Buffet’s celebrated punctuation sums it up: “Be fearful erstwhile others are greedy, and greedy erstwhile others are fearful.”

Now, present is simply a illustration that shows the inclination successful the Bitcoin fearfulness and greed scale implicit the past year:

The worth of the indicator seems to person been rather debased precocious | Source: Arcane Research's The Weekly Update - Week 21, 2022

As you tin spot successful the supra graph, the Bitcoin fearfulness and greed scale has a worth of 16 close now, suggesting that the marketplace is highly fearful.

These debased values of the metric person remained for astir a period now, making it the longest agelong of utmost fearfulness since close aft the COVID clang backmost successful April 2020.

Related Reading | Bitcoin Exchange Outflows Suggest That Investors Are Starting To Accumulate

The study notes that agelong periods of mediocre sentiment aren’t bonzer successful the crypto market, but successful the past specified stretches person usually observed impermanent spikes to amended sentiment.

In the period of May, determination was nary specified interruption that provided Bitcoin investors with a glimmer of hope.

BTC Price

At the clip of writing, Bitcoin’s terms floats astir $31.4k, up 6% successful the past 7 days. Over the past month, the crypto has mislaid 16% successful value.

The beneath illustration shows the inclination successful the terms of the coin implicit the past 5 days.

Looks similar the terms of the crypto has observed a propulsion up successful the past mates of days | Source: BTCUSD connected TradingView

Bitcoin has present maintained powerfully supra the $31k people for the archetypal clip since the opening of May. However, astatine the moment, it’s unclear whether this betterment volition last.

Featured representation from Unsplash.com, charts from TradingView.com, Arcane Research