Crypto fear and greed shows investors that although they are cautious still, market sentiment is showing signs of sustainable recovery.
Crypto Fear And Greed Index Surges Up, But Remains In “Fear” Territory
According to Arcane Research’s latest Weekly Report, market sentiment reached its highest level since April this year.
The “fear and greed index” is an indicator that measures the general sentiment among investors in the crypto market.
For this purpose, the metric employs a numeric scale from zero through 100. Any value above 50 indicates a hungry market. Values below 50 are indicative of fearful investors.
Values approaching the end of the range of above 75 or below 25 indicate “extreme greed” and “extreme fear” sentiments, respectively.
Tops tend to form when there is extreme fear. Bottoms are more common in times of extreme anxiety.
Some investors feel that earlier times offer ideal opportunities for buying, while later periods can prove to be a good selling point.
Below is a chart depicting the change in the cryptocurrency fear and greed index during the past year.
The value of this metric seems to have been rising steadily in the recent days. Source: Arcane Research’s The Weekly Update Week 30, 2022| Source: Arcane Research's The Weekly Update - Week 30, 2022
You can see that, as you can see from the graph above, crypto fear and greed had just been within the extrem fear zone for a few months. It was the longest period of rock bottom mentality.
The indicator saw some improvement over the past few weeks as various coins on the market experienced recovery.
At the time the report came out (which was yesterday), the fear and greed index had a value of “31.” This implies a fearful market.
Today, the sentiment has slightly improved as the value of the indicator is now “34,” which is however still firmly inside the fear territory.
At the moment, the value of this indicator is 34. Source: Alternative| Source: Alternative
On Saturday, the metric came close to stepping out of the fear territory as it attained a value of “42.” This happens to be the highest value the indicator has seen since April. However, fear and greed fell back before there was a chance of greed breakout.
According to the latest trends, investors remain cautious even though market sentiment is improving. This might lead to a more gradual, but longer-lasting recovery of the market.
BTC Prices
At the time of writing, Bitcoin’s price floats around $23.3k, up 9% in the past week.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Featured Image from Quantitatives at Unsplash.com. Charts from TradingView.com. Arcane Research