Since the beginning of the year, sentiment in the crypto market has fallen in line with the fall in the bitcoin price. Bitcoin is the mainstay of crypto markets, and has been having a difficult time in recent months. As the first cryptocurrency, Bitcoin, continues to have difficulty holding a high value on the market, sentiment is at its lowest point in three months.
Market in Extreme Fear
This is the longest fear trend in crypto history. Market sentiment hasn’t seen any improvement over the past six month. In August 2018, the market saw some recovery and the crypto market came close to leaving fear territory.
The bitcoin price had risen to above $25,000 during this period. It had risen to above $25,000. However, the price of bitcoin has been unable to enter green territory since that time.
Since three months, market sentiment remains muted. There has been no positive change in the stock exchange over that time. Score for the week ended at 22. The market is now in extrem fear territory. Also, September was a continuation of the theme.
Extreme market sentiment | Source: alternative.com
It was expected that the market would see some recovery in the month of October but there hasn’t been much green in the market since then. Current market sentiment scores at 20. This indicates that investor sentiment has declined even further.
Bitcoin has The Market
Bitcoin is still the dominant cryptocurrency market player since inception. However, its dominance has fallen. However, bitcoin’s price movement is still a major factor in the market direction and the mood for investors. This means that the cryptocurrency market must see an increase in its price to end the fear zone.
One thing you can expect from negative investor sentiment, however, is a refusal of investors to place money in the market. People will invest more when the prices go up than they do when the markets are down, even though this is the best time for them to enter the market.
BTC cannot reclaim $20,000| Source: BTCUSD on TradingView.com
Bitcoin’s current price does not spark confidence in the hearts of investors, hence the reluctance for investors to want to purchase cryptocurrencies. The price of this digital asset must rise to $20,000, but that is unlikely as the currency is still trading below its 50 day moving average.
The bears have already mounted significant resistance at $19 600. Given the sell pressure on bitcoin, it’s likely that bitcoin prices will drop to $19,000 before reaching resistance at $19600. BTC may attempt the $20,200 resistance level after a test is completed.
Featured image taken from Genetic Engineering and Biotechnology News. Chart from TradingView.com
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