Market Sentiment Returns To Extreme Fear As Bitcoin Drops To $36k
Recently, as the price of the crypto recovered back above $38k, the market sentiment rose to that of fear. However, today, the price of BTC has again declined, leading to a return to extreme fear sentiment.The relevant indicator here is the “fear and greed index,” which measures the general sentiment among Bitcoin investors.
Related Reading | Bitcoin Sees Poor Demand As Investors Try to Defend $37K, Is BTC In Trouble?
The trend in the metric over the past year | Source:
As you can see in the above graph, the Bitcoin market has been extremely fearful for a while now as the price has continued to struggle.
However, a few days back the sentiment improved a bit to that of fear as the crypto showed some recovery. On Sunday, the indicator surged to a value of 30, the highest it has been in the year 2022.Related Reading | Volume Of Bitcoin Illiquid Supply Points To Growing Bullish Sentiment
At the time the report with the chart came out, the metric still had a value of 26. But now that Bitcoin has dropped below $37k again, the market sentiment has once again shifted into one of extreme fear.The fear and greed index has a value of 20 right now | Source:It’s currently unclear when the sentiment may see a real improvement. Back during the May-July 2021 mini-bear period, such extreme fear values continued for a few months before the bottom was in.
BTC Price
At the time of writing, Bitcoin’s price floats around $36.7k, down 0.1% in the past week.
BTC's price has plunged down in the past 24 hours | Source:
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research