Why The Crypto Fear & Greed Index Points To Sustainable Recovery

The cryptocurrency fear and greed indicator shows that while investors remain cautious, market sentiment is nonetheless making for a sustainable recovery.

Cryptocurrency Fear and Greed Index Rises, But Remains in “Fear” Zone

According to the latest weekly report from obscure researchOn Saturday, market sentiment rose to the best since April of this year.

The “Fear and Greed IndexIt is an indicator that measures the general sentiment among investors in the cryptocurrency market.

The scale uses a numerical scale that runs from zero to one hundred to represent this feeling. All values ​​above 50 indicate a greedy market, while values ​​below the level indicate fearful investors.

Values ​​near the end of the range over 75 or less than 25 indicate “extreme greedand feelings of ‘extreme fear’, respectively.

Historically, lows tended to form during periods of extreme fear, while peaks occurred during other extreme emotions.

For this reason, some investors believe that earlier periods bring with them ideal buying opportunities, while later periods can be suitable selling points.

Now, here is a chart showing the trend in the cryptocurrency fear and greed index over the past year:

Cryptographic Fear and Greed Index

Looks like the value of the metric has been steadily climbing up in recent days | Source: Arcane Research's The Weekly Update - Week 30, 2022

As you can see in the chart above, a little while ago, the cryptocurrency Fear & Greed Index has been inside its extreme fear zone for two months, making it the longest-ever streak of a rock bottom mentality.

But, over the past few weeks, the index has noticed some growth as the different coins in the market witnessed a rebound at the same time.

At the time the report was released (which was yesterday), the fear and greed index value was “31”. This means there is a fearful market.

Today, sentiment has improved a bit as the index value is now “34” which remains firm within the fear zone.

Fear of coding

The value of the indicator is 34 at the moment | Source: Alternative

On Saturday, the scale came close to breaking out of the fear zone as it reached a value of “42”. This is the highest value the index has seen since April. But before greed happened, the fear and greed index slipped again.

The recent trend indicates that while market sentiment has been improving, investors have remained cautious. This may pave the way for a slower but more sustainable market recovery.

BTC price

At the time of writing this report, Bitcoin price It is floating around $23.3K, up 9% in the past week.

Bitcoin Crypto Price Chart

The value of the crypto seems to been trending sideways during the last few days | Source: BTCUSD on TradingView
Featured image from Quantitatives on Unsplash.com, charts from TradingView.com, Arcane Research

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