Data shows that Bitcoin investors still hold a sentiment of fear as the cryptocurrency’s price continues to consolidate.
Bitcoin Fear & Greed Index Is Currently Pointing At ‘Fear’
The “Fear & Greed Index” is an indicator created by that, in short, tells us about the general sentiment present among the traders in the Bitcoin and wider cryptocurrency markets.
To determine this sentiment, the index uses the data related to the following five factors: volatility, trading volume, social media sentiment, market cap dominance, and Google Trends. The indicator represents this mentality as a score between zero and hundred.
Investors share a sentiment of greed when the metric has a value greater than 53. On the other hand, being under 47 implies dominance of fear in the market. The region between these two thresholds naturally corresponds to the neutral sentiment.
Now, here is what the current value of the Fear & Greed Index looks like:
The value of the index appears to be 34 | Source:
As is visible above, the Bitcoin Fear & Greed Index is 34 at the moment, suggesting that the investors are feeling fear. The current fearful mentality isn’t too strong, given the distance to the neutral territory.
Earlier in the month, the indicator had shown particularly low values, as the chart below displays.
Looks like the value of the metric has been relatively low in recent days | Source:
On August 6th, the Fear & Greed Index had hit a low of 17, the lowest that it had gone in more than two years. When the indicator achieves such low values, it no longer reflects just fear but rather a special sentiment called extreme fear.
Extremity fear is defined as the zone that occurs at 25 and under. There is also a similar region for the greed side, called extreme greed, occurring over 75.
Interestingly, the extreme fear low coincided with Bitcoin’s bottom under the $50,000 level. This is similar to what has been observed throughout the asset’s history.
BTC has tended to move opposite to the expectations of the majority, and the extreme sentiment zones are evidently where this expectation is the strongest, so it makes sense that reversals in the price would also be the most likely to occur inside them.
With the sentiment sitting in the normal fear territory and the Bitcoin price consolidating, another foray into the extreme fear may be needed if Bitcoin has to kickstart fresh bullish momentum. How the indicator develops in the coming days remains to be seen.
BTC Price
Bitcoin has been unable to find a solid break above the $61,000 level recently, and it appears that the latest attempt may have ended in a similar failure as BTC, which has retraced to $60,800.
The price of the coin seems to have been stale over the last few days | Source:
Featured image from Dall-E, Alternative.me, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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