Information reveals the Bitcoin worry and greed index has continued to show low values for the third straight week because the market stays fearful.
Bitcoin Concern And Greed Index At the moment Factors At “Concern”
In response to the most recent weekly report from Arcane Research, the BTC market has now remained fearful for the third consecutive week.
The “worry and greed index” is an indicator that tells us what the final sentiment amongst buyers within the Bitcoin market at present 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
However, indicator values under the cutoff present that the market sentiment is that of worry for the time being.
Finish values of above 75 and under 25 characterize investor sentiments of maximum greed and excessive worry, respectively.
Traditionally, tops have tended to kind during times of maximum greed, whereas bottoms have shaped throughout excessive worry.
Due to this, some buyers imagine that it’s greatest to purchase through the former, whereas the latter intervals are greatest for promoting.
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Contrarian investing is a buying and selling approach 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 development within the Bitcoin worry and greed index over the previous 12 months:
The BTC market appears to be fearful for the time being | Supply: Arcane Research's The Weekly Update - Week 16, 2022
As you possibly can see within the above graph, the Bitcoin worry and greed index is at present displaying a price of 27, equivalent to a sentiment of worry.
This worth is correct on the sting of maximum worry, 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 worry.
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The rationale behind this development could also be the truth that BTC has been caught in consolidation for some time now, displaying no actual motion.
The report means that buyers appear to be anxiously ready for Bitcoin to make a transfer earlier than they take any motion.
BTC Worth
On the time of writing, Bitcoin’s worth 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 development within the worth of the coin over the past 5 days.
Appears to be like like the worth 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
