According to data, the Bitcoin price has been struggling for five months and the market sentiment is mostly fear-based.
Bitcoin Fear and Greed Index Points At A Fearful Stock
According to the most recent weekly report by Arcane Research the crypto market remains fearful as the prices are showing no sign of recovery.
The “fear and greed index” is an indicator that tells us about the general sentiment among Bitcoin and crypto investors.
A numeric scale of one to 100 is used for the measurement. Values below fifty usually denote “fear,” while values above the mark indicate “greed.”
An index value of 75 or less than 25 indicates extreme greed or extreme fear.
An indicator that sentiment is more neutral than usual may be the fear-and-greet index hovering around fifty
Here’s a chart showing the Bitcoin fear-and-greed index trend over the last year.
Source: Arcane Research's The Weekly Update - Week 17, 2022| Source: Arcane Research's The Weekly Update - Week 17, 2022
The graph above shows that Bitcoin fear and greed has reached 27 points this week. This indicates that there is a lot of market fear.
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The crypto market has been gripped by this fearful sentiment for five months with only a couple of brief spikes to neutral sentiment.
Bitcoin has been facing carnage during this period and so far there hasn’t been any signs of it stopping anytime soon.
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According to the report, one factor that influences sentiment measurement is altcoins’ relative performance against Bitcoin. Altcoins are doing poorly, which has contributed to fear sentiment.
Currently, it’s unclear when a neutral or greedy sentiment may return to the crypto market. If the investor mindset is to change, prices will probably see a rebound.
BTC Prices
At the time of writing, Bitcoin’s price floats around $39k, up 1% in the last seven days. The crypto’s value has fallen 15% over the last month.
Below chart displays the trends in the value of the coin during the last five working days.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Bitcoin appears to be consolidating further as it has remained below $40k.
Unsplash.com's featured image. Charts by TradingView.com. Arcane Research: