Data shows the Bitcoin investor sentiment has recently improved, but buyers are still reluctant as fear continues in the market.<\/p>\n
Bitcoin Fear And Greed Index Points To A Fearful Sentiment<\/p>\n
As per the latest weekly report from Arcane Research, the BTC market sentiment hit a high of 34 last week, but now it has once again fallen to just above extreme fear territory.<\/p>\n
The \u201cfear and greed\u201d index is an indicator that measures the general sentiment among investors in the Bitcoin market.<\/p>\n
The metric uses a numeric scale that runs from zero to hundred for representing this sentiment. All values above fifty imply greed, while those below the threshold suggest fear.<\/p>\n
Values towards the end of the range of above 75 and below 25 signify sentiments of \u201cextreme greed\u201d and \u201cextreme fear,\u201d respectively.<\/p>\n
Historically, tops have tended to form during extreme greed, while bottoms have taken place during the periods with the latter sentiment.<\/p>\n\n
Because of this fact, some traders believe it\u2019s best to sell while the market is extremely greedy and buy when investors are extremely fearful.<\/p>\n
\u201cContrarian investing\u201d is a trading technique that echoes this idea. The famous Warren Buffet quote sums it up: \u201cbe fearful when others are greedy, and greedy when others are fearful.\u201d<\/p>\n
Now, here is a chart that shows the trend in the Bitcoin fear and greed index over the past year:<\/p>\n\n
The value of the indicator seems to have surged up during recent weeks | Source: Arcane Research’s The Weekly Update – Week 29, 2022<\/p>\n
As you can see in the above graph, the Bitcoin fear and greed has observed some growth recently and is currently at a value of 26, suggesting a fearful sentiment is gripping the market currently.<\/p>\n
Preceding this latest improvement in the mentality was a long stretch of extreme fear, the longest in the history of the crypto, in fact. It lasted for 74 days.<\/p>\n
Last week, the indicator\u2019s value had risen up to even 34 as the coin\u2019s price saw a recovery rally. However, as the run ended and the crypto once again slumped down, so did the sentiment among the investors.<\/p>\n
The report notes that this trend indicates participants in the BTC (and wider crypto) market believe that this recent rally was just a fakeout.<\/p>\n
Overall, the sentiment is certainly an improvement over the extreme fear hell of June, but the buyers still remain reluctant.<\/p>\n
BTC Price<\/p>\n
At the time of writing, Bitcoin\u2019s price floats around $21.3k, down 10% in the last week. Over the past month, the crypto has gained 2% in value.<\/p>\n
The below chart shows the trend in the price of the coin over the last five days.<\/p>\n\n
Looks like the value of the crypto has gone down over the last few days | Source: BTCUSD on TradingView
\nFeatured image from Kanchanara on Unsplash.com, charts from TradingView.com, Arcane Research<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
Data shows the Bitcoin investor sentiment has recently improved, but buyers are still reluctant as fear continues in the market.<\/p>\n
Bitcoin Fear And Greed Index Points To A Fearful Sentiment<\/p>\n
As per the latest weekly report from Arcane Research, the BTC market sentiment hit a high of 34 last week, but now it has once again fallen to just above extreme fear territory.<\/p>\n
The \u201cfear and greed\u201d index is an indicator that measures the general sentiment among investors in the Bitcoin market.<\/p>\n
The metric uses a numeric scale that runs from zero to hundred for representing this sentiment. All values above fifty imply greed, while those below the threshold suggest fear.<\/p>\n
Values towards the end of the range of above 75 and below 25 signify sentiments of \u201cextreme greed\u201d and \u201cextreme fear,\u201d respectively.<\/p>\n
Historically, tops have tended to form during extreme greed, while bottoms have taken place during the periods with the latter sentiment.<\/p>\n
Because of this fact, some traders believe it\u2019s best to sell while the market is extremely greedy and buy when investors are extremely fearful.<\/p>\n
\u201cContrarian investing\u201d is a trading technique that echoes this idea. The famous Warren Buffet quote sums it up: \u201cbe fearful when others are greedy, and greedy when others are fearful.\u201d<\/p>\n
Now, here is a chart that shows the trend in the Bitcoin fear and greed index over the past year:<\/p>\n
The value of the indicator seems to have surged up during recent weeks | Source: Arcane Research’s The Weekly Update – Week 29, 2022<\/p>\n
As you can see in the above graph, the Bitcoin fear and greed has observed some growth recently and is currently at a value of 26, suggesting a fearful sentiment is gripping the market currently.<\/p>\n
Preceding this latest improvement in the mentality was a long stretch of extreme fear, the longest in the history of the crypto, in fact. It lasted for 74 days.<\/p>\n
Last week, the indicator\u2019s value had risen up to even 34 as the coin\u2019s price saw a recovery rally. However, as the run ended and the crypto once again slumped down, so did the sentiment among the investors.<\/p>\n
The report notes that this trend indicates participants in the BTC (and wider crypto) market believe that this recent rally was just a fakeout.<\/p>\n
Overall, the sentiment is certainly an improvement over the extreme fear hell of June, but the buyers still remain reluctant.<\/p>\n
BTC Price<\/p>\n
At the time of writing, Bitcoin\u2019s price floats around $21.3k, down 10% in the last week. Over the past month, the crypto has gained 2% in value.<\/p>\n
The below chart shows the trend in the price of the coin over the last five days.<\/p>\n
Looks like the value of the crypto has gone down over the last few days | Source: BTCUSD on TradingView
\nFeatured image from Kanchanara on Unsplash.com, charts from TradingView.com, Arcane Research<\/p>\n
<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-4280","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/4280","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=4280"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/4280\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=4280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=4280"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=4280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}