Bitcoin’s Fear and Greed indicator hit its worst level since the “corona crash” episode in March 2020. That month, bitcoin price closed 25% against the dollar as the pandemic accelerated, the fall of several assets with variable income around the world.
Bitcoin did not escape moments of stress on that occasion, registering one of the currency’s biggest daily declines with a 45% loss on its worst day ever. It is worth remembering that the moment each bitcoin costs $4,200.00 by currency, very different from the current price of 30 thousand dollars.
However, after a few days, bitcoin skyrocketed and was no longer a fearsome currency, nor devalued in that way. until today†
Bitcoin Fear and Greed Indicator Reaches Worst Post “Corona Crash”
Created by the website Alternative.me, the Index of fear and greed is an indicator that has become popular among bitcoin investors. This is because it measures market sentiment towards digital currencies, which is one of the key indicators of sentimental analysis of bitcoin.
For those who buy and sell with brokers, this is certainly not considered in isolation, but rather in addition to analysts.
This Tuesday (17) those who entered the tool finally realized an alarming situation, namely the level of Extreme Fear of the Bitcoin market which registered the figure 8. This indicator ranges from 0 (Extreme Fear) to 100 (Extreme Optimism).
But what’s striking about this move is that it hasn’t been seen since March 17, 2020, when global markets went through what became known as Corona Crash. It is worth remembering that the price of bitcoin has already lost 23% of its price in dollars in the last 14 days, a value that is also comparable to that in the month of March 2020.
Is this good for someone who is planning to buy? Indicator calls attention to opportunities
The explanation for reading the indicator provided by the creators is that Extreme Fear is a clear sign that investors are concerned about the future of bitcoin. However, this is also a good sign of BTC purchases as it can signal market bottoms.
This is, of course, a sentiment indicator that should not be considered alone for analysis as there are other factors to consider. But those who bought the latest Fear Extreme 8 have no regrets even with the current market crash.
However, it is important to bear in mind that there are uncertainties in the market and further declines could occur. If this happens, the market could enter another “crypto winter”, a period marked by successive declines.
The recommended thing for those who want to invest and not be left out is to do the average price, a technique known by some Brazilian fans.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
