Data suggests that the 2022 bear has submerged to its lowest level since 2022 bear market after the latest accident in Bitcoin Fear and Greed Index BTC price.
Bitcoin Fear and Greed Index currently has only 10 value
Refers to an indicator manufactured by “fear and greed index” Option This tells us about the average feeling among traders in bitcoin and broad cryptocurrency markets.
The metric uses a numerical scale running from zero to hundred hundred to represent the market mentality. There are five areas that can be in this value: extreme fear (25 and less), fear (26 to 46), neutral (47 to 53), greed (54 to 75), and extreme greed (76 and more).
Here is described how the fear and greed index is visible right now:
Looks like the value of the metric is 10 at the moment | Source: Alternative
As it appears above, the Bitcoin Fear and Greed Index is sitting at 10 am, meaning that the emotion is deep in the extreme fear area. A few days ago, the mood between traders was quite different, as the index was inside the neutral region instead.
The reason behind this harsh change in emotion is an accident that the price of cryptocurrency has gone through the last few days.
The trend in the indicator over the past twelve months | Source: Alternative
After the latest decline in the Fear and Greed Index, its value has reached the lowest point since mid -2012, when Bitcoin was deep in its last bear market. Thus, it appears that in this way the bull run tambling has given a lot of shock to the investor morale.
If there is anything to refer to history, however, it can not actually cause so bad development for cryptocurrency. Indeed, BTC has often formed a below when the emotion has fallen into extreme fear.
Similar effects have also been seen to the extreme greed side, where the coin is generally tilted to achieve a top. The summit of last month was also when the index was inside the region.
Thus, it appears that bitcoin has a tendency to move in that direction that is contrary to the expectation of the majority of the crowd. Followers of a trading technique are called contrast investing, the time of this fact takes advantage of their steps.
These traders buy when the average investor is feeling fear and sells when a wave of enthusiasm is pulsing through the market. The famous quotes of Warren Buffet also sang the idea, “When others are greedy, and when others are frightened, they become greedy.”
With the bitcoin fear and greed index falling to a very low level, perhaps the controller traders will now consider buying in the property. It is only to be seen, however, whether BTC will be able to make one down on these values, or if the emotion will have to be reduced even more.
BTC Price
At the time of writing, bitcoin has been floating around $ 84,700 below 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
Specially displayed from Dall-E, optional. Me, chart from tardingView.com
