bitcoin extreme fear, bitcoin fear and greed index

Data shows the Bitcoin market has again fallen back into a state of extreme fear as the price has plummeted down over the past week.

Bitcoin Fear And Greed Index Says Market Is Extremely Fearful

As per the latest weekly report from Arcane Research, extreme fear has returned to the BTC market, suggesting now may be the time to buy.

The “fear and greed index” is an indicator that tells us about the general sentiment among investors in the Bitcoin market.

The index uses a numeric scale that runs from one to hundred for representing the sentiment. All values above the “50” point signify greed, while those below the cutoff imply the market is fearful right now.

Values towards the end of the range of above 75 and below 25 indicate sentiments of extreme greed and extreme fear, respectively.

Historically, bottoms have tended to form during periods of extreme fear while tops have occurred when the market is extremely greedy.

Because of this, some investors believe that buying during extreme fear and selling during extreme greed in optimal.

“Contrarian investing” is a trading method that follows this idea. Warren Buffet’s famous quote best sums the philosophy up:

Be fearful when others are greedy, and greedy when others are fearful.

Now, here is a chart that shows the trend in the Bitcoin fear and greed index over the past year:

bitcoin extreme fear, bitcoin fear and greed index
The value of the indicator seems to have plunged down in the last week | Source: Arcane Research’s The Weekly Update – Week 18, 2022

As you can see in the above graph, the Bitcoin fear and greed index now has a value of 10, suggesting that the sentiment has declined to extreme greed.

The report notes that the value of the metric hasn’t been worse than this since the COVID crash back in March 2020.

As mentioned before, such a sentiment usually brings with it buying opportunities. However, even so it’s not a sure buy signal either.

The last time the index reached a similar value was back in January of this year. Then, the bottom didn’t actually form until two weeks after the sentiment turned extremely fearful and Bitcoin observed another drop of 20%.

So, it’s not certain if now is the time to buy. But nonetheless, such a deep extreme fear sentiment might just be a signal for investors to look out for bottoms forming in the near future.

BTC Price

At the time of writing, Bitcoin’s price floats around $29.5k, down 25% in the past week.

bitcoin extreme fear, bitcoin fear and greed index
Looks like the price of the crypto has observed a sharp drop today | Source: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, Arcane Research

TECH NEWS RELATED

'Crypto Boy' TikTok Star Is Releasing Her Own NFTs—But Has No Plans to Become 'CEO of Being Unemployed'

Off the success of her viral satire of crypto-obsessed men, Salem Ilese is launching an NFT collection with Pussy Riot co-founder Nadya Tolokonnikova next week.

View more: 'Crypto Boy' TikTok Star Is Releasing Her Own NFTs—But Has No Plans to Become 'CEO of Being Unemployed'

Long Liquidations Continue To Rock Market As Bitcoin Struggles To Settle Above $30,000

The effects of the long liquidations that rocked bitcoin after the digital asset had fallen to $25,000 continue to be felt even now. Bitcoin which has since managed to recover above $30,000 once more remains a prime liquidation target in the market. Even now, a week after the crash ...

View more: Long Liquidations Continue To Rock Market As Bitcoin Struggles To Settle Above $30,000

Gary Vee Kicks Off VeeCon 'Summer Camp' to Show NFTs Are 'More Than Just Collectibles'

Vaynerchuk speaks with Decrypt as his NFT-gated conference brings major creators and entertainers to Minneapolis.

View more: Gary Vee Kicks Off VeeCon 'Summer Camp' to Show NFTs Are 'More Than Just Collectibles'

Stocks Hurt US Households More Than Crypto, Commonwealth Bank Pauses Crypto Plans, Bitcoin PizzaDAO + More News

Source: Adobe/Nuthawut Get your daily, bite-sized digest of cryptoasset and blockchain-related news – investigating the stories flying under the radar of today’s crypto news. __________ Investments news Crypto holdings account for just 0.3% of US household net worth, compared with equities, which accounted for around 33% at the end ...

View more: Stocks Hurt US Households More Than Crypto, Commonwealth Bank Pauses Crypto Plans, Bitcoin PizzaDAO + More News

How is Quitriam Finance (QTM) Disrupting the Crypto World? Can it Become the King of Cryptocurrency, Like Stellar (XLM) or Axie Infinity (AXS)?

Disclaimer: The text below is an advertorial article that was not written by Cryptonews.com journalists. Introduction The recent crash of the cryptocurrency market raises several concerns for investors. However, one can profit from a declining market in many ways. The easiest way is to keep an eye out for underrated ...

View more: How is Quitriam Finance (QTM) Disrupting the Crypto World? Can it Become the King of Cryptocurrency, Like Stellar (XLM) or Axie Infinity (AXS)?

Metalpha: Advanced Digital Asset Management Platform Jointly Established by LYL Dragon Victory International and Antalpha AntPool

Disclaimer: The text below is an advertorial article that was not written by Cryptonews.com journalists. Recently, Metalpha, a digital coin management platform attracting great attention, was put online for operation. It is reported that Metalpha Platform is a company jointly established by Meta Rich Limited (“Meta Rich”), a wholly-owned subsidiary ...

View more: Metalpha: Advanced Digital Asset Management Platform Jointly Established by LYL Dragon Victory International and Antalpha AntPool

KuCoin, OKX Stick to Their Hiring Plans Despite Downturn as Coinbase Slows Down Hiring

Source: AdobeStock / ijeab Crypto exchanges KuCoin and OKX, say they do not intend to make any major changes to their respective hiring plans, maintaining a steady stream of new job openings. While the ongoing downturn in the crypto market has pushed some major industry players such as Coinbase ...

View more: KuCoin, OKX Stick to Their Hiring Plans Despite Downturn as Coinbase Slows Down Hiring

Bitcoin and Ethereum Consolidate, SAND and AAVE Accelerate

Bitcoin price is still holding the key USD 30,000 level. Ethereum remains above USD 2,000, XRP is consolidating above USD 0.40. SAND and AAVE are up around 11%. Bitcoin price remained well supported above the USD 30,000 level and even tested USD 30,500. It is currently (13:50 UTC) trading ...

View more: Bitcoin and Ethereum Consolidate, SAND and AAVE Accelerate

Tether Cuts 17% Of Its Commercial Paper Holdings Over Q1 2022

Pacman Frog (PAC) Racking Up Massive Gains in Presales, as Near Protocol (NEAR) and Waves (WAVES) Receive Massive Upgrades

NFT Coins that Could Undergo a Parabolic Surge in 2022: Flow (FLOW) and Parody Coin (PARO)

Russian Crypto Regulation Can’t Be Delayed any Longer, Claims Top MP

How To Spot a Trustworthy Crypto Casino

Upcoming Crypto Regulations 'Need to Take Into Account' Terra Collapse: UK Financial Authority

How Blockchain is Finally Getting Africa on the Grid

WNBA Fans Criticize Coinbase Sponsorship Amid Market Crash

G7 Keeps Pushing for Crypto Regulation, Here's What's Already Happening

Binance Adds Support for Layer-2 Ethereum Scaling Solution Optimism

Terra Adds an Amendment to Do Kwon’s Revival Plan, Survey Reveals UST Losses

Congress May 'Work More Quickly' on Stablecoin Regulations Amid UST Collapse: SEC Commissioner

OTHER TECH NEWS

Top Car News Car News