The data shows that the Bitcoin market has mostly exhibited a sense of dread and extreme fear for about five months now with the price continuing to struggle.
Bitcoin Fear and Greed Indicator Continues To Point To A Scary Market
According to the latest weekly report from Mysterious SearchThe cryptocurrency market remained fearful this week as prices show no signs of recovery.
The “Fear and Greed Index“It is an indicator that tells us about the general sentiment among bitcoin and cryptocurrency investors.
The scale uses a numerical scale that runs from one to one hundred to display feelings. Values below 50 usually indicate ‘fear’, while values above the mark indicate ‘greedy’.
Index values above 75 and below 25 indicate that the market is facing extreme greed and intense fearStraight.
The Fear and Greed Index near 50 can be taken as a sign that sentiment is somewhat neutral at the moment.
Now, here is a chart showing the trend in the Bitcoin Fear & Greed Index over the past year:
It looks like the indicator is still observing a rather low value | Source: Arcane Research's The Weekly Update - Week 17, 2022
As you can see in the above chart, the Bitcoin Fear and Greed Index has a value of 27 this week, which indicates that the market is close to being very fearful.
Related reading | Altcoin Aversion: Why Bitcoin and Stablecoin Are Growing Dominant
Barring a few short spikes in neutral sentiment, these fearsome sentiments have dominated the cryptocurrency market for more than five months now.
Bitcoin faced a massacre during this period and so far there have been no signs of stopping any time soon.
Related reading | Bitcoin buying and selling percentage returns to the ‘waiting’ zone
The report notes that one factor that goes into measuring sentiment is the relative performance of altcoins versus bitcoin. Recently, cryptocurrencies have been performing very poorly, adding to the feelings of fear.
At the moment, it is unclear when neutral or greedy sentiment might return to the cryptocurrency market. Prices are likely to show any real recovery if investor mentality has to improve.
At the time of writing this report, Bitcoin price It is floating around $39,000, up 1% in the past seven days. Over the past month, the cryptocurrency has lost 15% of its value.
The chart below shows the currency price trend over the past five days.
Looks like the price of the crypto has surged up over the last twenty-four hours | Source: BTCUSD on TradingView
It appears that Bitcoin has continued to consolidate further this week as the coin is still trapped below the $40K mark.
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research