The data shows that the Bitcoin Fear and Greed Index has shown low levels for the third consecutive week, as the market continues to be fearful.
Bitcoin Fear And Greed Index Currently Points At “Fear”
Arcane Research’s latest weekly report shows that the BTC market remains fearful for the third consecutive week.
The “fear and greed index” is an indicator that tells us what the general sentiment among investors in the Bitcoin market currently is.
For this purpose, the metric employs a numeric scale from one to 100. Any value above 50 indicates that the market has become greedy.
However, indicators below the cutoff indicate that market sentiment at the moment is one of fear.
A high end value of 75 or less than 25 represents extreme greed and fear in investors.
Tops tend to form in extreme greed and bottoms during times of fear.
Because of this, some investors believe that it’s best to buy during the former, while the latter periods are best for selling.
Glassnode Data reveals a Bullish Bitcoin Crossover has recently occurred| Glassnode Data Shows A Bullish Bitcoin Crossover Has Recently Occurred
Contrarian investing uses this concept. This famous quote from Warren Buffet encapsulates the philosophy: “Be fearful when others are greedy, and greedy when others are fearful.”
Below is a chart of the Bitcoin Fear and Greed Index over the past one year.
Source: Arcane Research's The Weekly Update - Week 16, 2022| Source: Arcane Research's The Weekly Update - Week 16, 2022
You can see that the Bitcoin Fear and Greed Index currently shows a value at 27. That is corresponding to a feeling of fear.
This indicator’s value sits right at the edge of extreme terror, and has been held steady by the market for the last few weeks. During that period, the indicator’s value has also had some dips to extreme fear.
Similar Reading: Bitcoin Bearish Signal, 600-Day MA To Start to Break Down| Bitcoin Bearish Signal: 600-Day MA Starts To Break Down
BTC may have been in consolidation for some time now and not shown any real movement. This might explain why this trend is occurring.
This report indicates that Bitcoin investors wait anxiously for it to move before taking any actions.
BTC price
At the time of writing, Bitcoin’s price floats around $39k, down 7% in the last week. The crypto’s value has fallen 12% over the last month.
The chart below shows how the currency’s price has changed over the course of five days.
The crypto price seems to have fallen over the past 24 hours | Source: BTCUSD on TradingView
Unsplash.com's featured image. Charts by TradingView.com. Arcane Research:
