The data shows that the Bitcoin Fear & Greed index has drowned to its lowest level since the 2022 bear market after the latest BTC collision.
The Bitcoin Fear & Greed Index is currently only 10
“Fear and Fear Index” indicates an indicator created by substitute This tells us about the average feelings between traders in Bitcoin markets and the broader cryptocurrency market.
The scale uses a digital scale that extends from zero to a hundred to represent the market mentality. There are five regions in which this value can be: intense fear (25 or less), fear (26 to 46), neutral (47 to 53), greed (54 to 75), and severe greed (76 or more).
Here is how fear and greed indicate now:
Looks like the value of the metric is 10 at the moment | Source: Alternative
As visible above, the Bitcoin Fear & Greed Index is now ten years old, which means that the feelings are deep in the intense fear area. Just a few days ago, the mood among merchants was very different, as the index was inside the neutral area instead.
The reason behind this sharp change in feeling is the collapse that the price of encoded currency has gone through the past few days.
The trend in the indicator over the past twelve months | Source: Alternative
In the aftermath of the last decrease in the Fear & Greed index, its value achieved the lowest point since mid -2012, when Bitcoin was deep in the last bear market. Thus, it appears that the bull run that fell in this way has completely dealt with the morale of the investor.
If history refers to anything, this may not actually be a bad development of the encrypted currency. In fact, BTC often forms a bottom when feelings decreased into great fear.
It also witnessed a similar effect on the side of the extremist greed, as the currency generally tends to achieve a summit. The peak last month also occurred when the index was inside this area.
Thus, Bitcoin seems to have a tendency to move in the direction that reflects what the majority of the crowd expects. Followers of trading technology called contradictory investment take advantage of this fact for their movements.
These traders buy when the average investor feels dread and sells when a wave of euphoria beats across the market. “Be afraid when others are greedy and greedy when others are afraid.”
With the Bitcoin Fear & Greed index to a very low level, contradictory traders may now originally consider purchase. It remains only to see, though, whether BTC is able to form a bottom in these values, or if the feelings have to degrade more before it occurs.
BTC price
At the time of this report, Bitcoin floats about $ 84,700, a decrease of approximately 14 % in the past seven days.
Looks like the price of the coin has seen a further drop in the past day | Source: BTCUSDT on TradingView
Distinctive image from Dall-E, Alternative.me, Chart from TradingView.com
