Two months of extreme fear leaves Krypto in panic, Bitcoin at $ 20K

Data show that the crypto market has now observed extreme fears for two months, causing investors to panic as Bitcoin crashed to $ 20k.

Crypto Fear And Greed Index Still Indicates “Extreme Fear”

According to the latest weekly report from Arcane Research, the crypto-currency market has been dealing with extreme fear for two months now, the longest streak in history.

The “fear and greed index” is an indicator that measures the general sentiment among investors in the Crypto market.

The metric uses a numerical scale ranging from zero to one hundred to represent this sentiment. All values ​​greater than fifty mean that investors are currently greedy, while those below the threshold indicate a fearful market.

Edge values ​​above 75 and below 25 mean holder sentiments of “extreme greed” and “extreme fear”, respectively.

Now, here’s a chart showing the trend in the Crypto Anxiety and Greed Index over the past year:

Crypto Fear And Greed Index

Looks like the value of the indicator has been very low recently | Source: Arcane Research's The Weekly Update - Week 24, 2022

As you can see in the chart above, the Crypto Anxiety and Greed Index currently has a value of 9, suggesting that the market is extremely scared.

Such low sentiment values ​​have now persisted for two months, making this the longest extreme fear run the market has ever seen.

Related Reading | Crypto-markets continue to fall: Bitcoin (BTC) and Ethereum (ETH) value declines

These indicator values ​​have remained while the entire crypto-sector has gone through a crash and a large part of the investors have gone into the red.

Historically, there have been areas of extreme fear when currencies like Bitcoin have tended to form bottoms (and in the same way, peaks have occurred during extreme greed).

As a result, some analysts believe that an extremely feared market could provide fresh buying opportunities for cryptocurrencies.

Related Reading | Bitcoin “Diamond Hands” Start to Break as 1yr + Delivery Disasters Increase Sales

The trading technique that follows this idea is called “counter-investing”. This famous quote from Warren Buffet embodies the philosophy: “be afraid when others are greedy, and greedy when others are afraid.”

If the historical trend is anything to go by, the current long run of extreme fear may be as Bitcoin and other currencies below observe. And if so, it may now be that a contradictory investor will believe it is an ideal buying point.

The price of Bitcoin

At the time of writing, the price of BTC is driving around $ 20.4k, down 1% in the last seven days. In the past month, the crypto has lost 30% in value.

The chart below shows the trend in the price of the currency over the last five days.

Bitcoin price history

The value of Bitcoin seems to have dropped down over the past day | Source: BTCUSD on TradingView
Featured image from Thought Catalog on Unsplash.com, charts from TradingView.com, Arcane Research


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