Data shows that the morale of the Bitcoin merchant has decreased to the extremist fear area, as the price of the original may erase its recent gains.
Bitcoin has already regained a spare encryption rally
Bitcoin and the rest of the cryptocurrency market this new week began with a very positive note, as prices throughout the sector were sharply improved after the strategic reserve for encryption from US President Donald Trump.
It seems that this optimism cannot continue, because the various origins have already seen a decline. Below is a scheme that displays Rollercoasster recently.
The trend in the BTC price over the last five days | Source: BTCUSDT on TradingView
As visible in the graph, Bitcoin touched $ 95,000 at the height of the mutation, but it has since decreased to $ 82,600. This means that it was not limited to the fact that the first cryptocurrency erases all its gains from the encryption reserve rally, but in reality, it decreased from what started.
Over the past 24 hours, BTC has printed losses of about 11 %. The performance of Altcoins was worse on average, with ETHEREUM (ETH) and XRP (XRP) sits 13 % and 14 % in red, respectively.
Looking at all this volatility, the investor’s feeling is expected to have noticed a fundamental shift. In fact, the trend in the index of fear and greed would confirm this.
Fear and greed index returned to extreme fear
“Fear & Greed Index” is an indicator created by an alternative that tells us about the feeling that the normal trader in Bitcoin and Abider Cryptocurrency markets now.
The scale uses a digital scale of 0-100 to represent the market mentality. Values are connected above 53 to the feeling of greed, while those under 47 years old indicate the dominance of fear. The index between these thresholds means a pure neutral mentality.
There are also two special regions called Extreme Greed (which occurs above 75) and extreme fear (less than 25). The market appears to be at the end of these areas at the present time, as the latest value of the Fear & Greed index is offered.
The metric appears to have a value of 15 at the moment | Source: Alternative
The indicator is currently at a value of 15, but only yesterday, it was much higher than 33. Here is a scheme that shows how the index changed recently:
Looks like the metric has plunged in recent days | Source: Alternative
As is evident from the graph, the Bitcoin Fear & Greed index fell to 10 at the end of February, but optimism between investors returned when the Trump advertisement came. Now, the accident was once again hoped that the merchants.
Return to extreme fear may not be very bad for BTC and others, as this region is where its prices have decreased historically. It remains only to see, though, to what extent you should get the worst feelings before it is hit this time.
Distinctive image from Dall-e, alternative.me, Chart from TradingView.com