Information reveals the Bitcoin concern and greed index has continued to show low values for the third straight week because the market stays fearful.
Bitcoin Worry And Greed Index Presently Factors At “Worry”
In line with the most recent weekly report from Arcane Analysis, the BTC market has now remained fearful for the third consecutive week.
The “concern and greed index” is an indicator that tells us what the overall sentiment amongst traders within the Bitcoin market at the moment is.
The metric makes use of a numeric scale that runs from one to hundred for representing this sentiment. All values above fifty signify that the market is grasping proper now
Then again, indicator values under the cutoff present that the market sentiment is that of concern for the time being.
Finish values of above 75 and under 25 characterize investor sentiments of maximum greed and excessive concern, respectively.
Traditionally, tops have tended to type in periods of maximum greed, whereas bottoms have shaped throughout excessive concern.
Due to this, some traders consider that it’s finest to purchase through the former, whereas the latter durations are finest for promoting.
Associated Studying | Glassnode Information Exhibits A Bullish Bitcoin Crossover Has Lately Occurred
Contrarian investing is a buying and selling method that makes use of this concept. This well-known quote from Warren Buffet encapsulates the philosophy: “Be fearful when others are grasping, and grasping when others are fearful.”
Now, here’s a chart that reveals the pattern within the Bitcoin concern and greed index over the previous 12 months:
The BTC market appears to be fearful for the time being | Supply: Arcane Analysis's The Weekly Replace - Week 16, 2022
As you may see within the above graph, the Bitcoin concern and greed index is at the moment exhibiting a price of 27, similar to a sentiment of concern.
This worth is correct on the sting of maximum concern, and the market has stayed round this worth for the previous few weeks. Throughout that interval, the indicator’s worth has additionally had some dips to excessive concern.
Associated Studying | Bitcoin Bearish Sign: 600-Day MA Begins To Break Down
The rationale behind this pattern could also be the truth that BTC has been caught in consolidation for some time now, exhibiting no actual motion.
The report means that traders appear to be anxiously ready for Bitcoin to make a transfer earlier than they take any motion.
On the time of writing, Bitcoin’s value floats round $39k, down 7% within the final week. Over the previous month, the crypto has misplaced 12% in worth.
The under chart reveals the pattern within the value of the coin over the past 5 days.
Appears like the value of the crypto has plunged down over the previous day | Supply: BTCUSD on TradingView
Featured picture from Unsplash.com, charts from TradingView.com, Arcane Analysis