Bitcoin Buyers Reluctant To Step In, Fear And Greed Index Suggests


Data shows that Bitcoin investor sentiment has improved recently, but buyers remain hesitant as market fear persists.

Bitcoin Fear and Greed Indicator Indicates a Scary Feeling

According to the latest weekly report from obscure researchThe market sentiment for BTC reached a high of 34 last week, but has now fallen back above the area of ​​intense fear.

The “Fear and greed“The index is an indicator that measures the general sentiment among investors in the bitcoin market.

The scale uses a numerical scale that runs from zero to one hundred to represent this feeling. All values ​​above 50 indicate greed, while values ​​below the threshold indicate fear.

Values ​​at the end of the range above 75 and below 25 indicate feelings.”extreme greedand ‘extreme fear’ respectively.

Historically, peaks tended to form during extreme greed, while troughs occurred during periods with the latter feeling.

Because of this fact, some traders believe that it is better to sell when the market is too greedy and to buy when investors are too scared.

“Reverse investing” is a trading style that echoes this idea. Warren Buffett’s famous quote sums it up: “Be afraid when others are greedy, and be greedy when others are afraid.”

Now, here is a chart showing the trend in the Bitcoin Fear & Greed Index over the past year:

Bitcoin indicator for fear and greed

The value of the indicator seems to have surged up during recent weeks | Source: Arcane Research's The Weekly Update - Week 29, 2022

As you can see in the above chart, Bitcoin fear and greed has seen some growth lately and is currently at $26, which indicates that there is a sense of fear currently dominating the market.

Before this latest mental improvement was a long period of intense fear, the longest in cryptocurrency history, in fact. It lasted for 74 days.

In the last week, the value of the index rose to 34 as the price of the currency witnessed a recovery. However, with the round ending and the cryptocurrency plummeting once again, so too has sentiment among investors.

The report notes that this trend indicates that participants in the BTC market (and the broader cryptocurrency) believe that this recent rally was just a fake.

Overall, sentiment is definitely an improvement compared to the intense fear hell in June, but buyers are still hesitant.

BTC price

At the time of writing this report, Bitcoin price It is floating around $21.3K, down 10% in the last week. Over the past month, the value of the cryptocurrency has gained 2%.

The chart below shows the currency price trend over the past five days.

Bitcoin price chart

Looks like the value of the crypto has gone down over the last few days | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Arcane Research



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