Bitcoin market plunges into extreme fear, how scary will it get?

Data shows that Bitcoin market sentiment has remained deep in extreme fear this week as broader financial markets become anxious as well.

Bitcoin Fear and Greed Index Shows 12 . This Week

According to the latest weekly report from mysterious investigationthe broader financial market is at its highest level of fear since the COVID crash in 2020.

The “Fear and Greed Index” is an indicator that tells us about general market sentiment among Bitcoin investors right now.

The metric represents this feeling with a numerical scale ranging from one to one hundred. All values ​​of the index above “50” imply a sense of greed, while all values ​​below the limit indicate a fearful market.

When the indicator has values ​​near the end of the range i.e. above 75 or below 25, the market is in a state of extreme greed or extreme fear.

Some investors believe that it is best to buy when the market is extremely anxious, as there have been bottoms during such periods in the past.

Likewise, peaks have formed in the past while the market has gone through extreme greed, so such times can be ideal for selling.

Related literature | Bitcoin Whale Breaks 8 Years of Silence with $30 Million in BTC Transfer

Contrary investing is a trading technique that follows this idea. To quote Warren Buffet: “Be afraid when others are greedy, and greedy when others are afraid.”

Here’s a chart showing the trend in the Bitcoin Fear and Greed Index over the past year:

Market sentiment seems to have plummeted recently | Source: Arcane Research’s Weekly Update – Week 19, 2022

As you can see in the chart above, the Bitcoin Fear and Greed Index currently has a reading of 12, indicating a sense of extreme fear.

Not only the crypto market is afraid, the broader financial markets have also been in a state of extreme fear for some time.

Related literature | Bitcoin Marks Seven Consecutive Red Candles, Paints A Horrifying Picture For The Market

The market has seen its highest extreme fear values ​​since the 2022 crash caused by the onset of COVID-19.

Currently, it is unclear whether sentiment has bottomed out or whether Bitcoin will bleed more in the coming days, pushing the fear and greed index further down.

BTC price

At the time of writing, Bitcoin’s price is hovering around $30.4k, down 3% over the past seven days. Over the past month, the cryptocurrency has fallen 24% in value.

The chart below shows the trend in the price of the coin over the past five days.

It looks like the price of the coin has been moving sideways for the past few days | Source: BTCUSD on TradingView
Featured image from, charts from, Arcane Research

Leave a Reply

Your email address will not be published.