Bitcoin Market Remains Scared For Third Consecutive Week


Data shows that the Bitcoin Fear and Greed Index continues to show lows for the third week in a row as the market remains anxious.

Bitcoin Fear and Greed Index Currently Points to “Fear”

According to the latest weekly report from mysterious investigationthe BTC market has now remained anxious for the third week in a row.

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

The metric uses a numerical scale ranging from one to one hundred to represent this feeling. Any reading above fifty indicates that the market is greedy right now

On the other hand, below-the-border indicator values ​​show that the market sentiment at the moment is that of fear.

Terminal values ​​above 75 and below 25 represent investor sentiments of extreme greed and extreme fear, respectively.

Historically, tops have tended to form during periods of extreme greed, while bottoms have formed during extreme fear.

Therefore, some investors believe that it is best to buy during the former, while the latter is best to sell.

Related literature | Glassnode Data Shows A Bullish Bitcoin Crossover Has Occurred Recently

Contrary investing is a trading technique that uses this idea. This famous Warren Buffet quote summarizes the philosophy: “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:

The BTC market appears to be anxious at the moment | Source: Arcane Research Weekly Update – Week 16, 2022

As you can see in the chart above, the Bitcoin Fear and Greed Index is currently showing a value of 27, which corresponds to a sense of fear.

This value is on the verge of extreme fear and the market has remained around this value for the past few weeks. During that period, the indicator’s value has also had some dips to extreme fear.

Related literature | Bitcoin Bearish Signal: 600-Day MA Begins to Crumble

The reason behind this trend could be the fact that BTC has been stuck in consolidation for a while and showing no real movement.

The report suggests that investors seem anxious to wait for Bitcoin to make a move before taking action.

BTC price

At the time of writing, Bitcoin price is hovering around $39k, down 7% over the past week. Over the past month, the crypto has fallen 12% in value.

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

It seems that the price of the crypto has fallen in the past day | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research

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