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Recent data from the Crypto Fear & Greed Index indicates that the cryptocurrency market is going through a period of investor fear with a low score of 27 out of 100 over 3 months.
Using the primary cryptocurrency Bitcoin (BTC) asset as a representative of the markets, the seasoned technical analysis tool educates cryptocurrency traders around the world on the current emotional sentiment and market biases.
This data can then be used – consistent with other analytical strategies – to determine the potential for a future rise or correction and, ultimately, whether the price levels represent an opportunity to buy or sell the market.
A lower number out of 100 indicates a move towards extreme market fear and that BTC may be undervalued, while a higher number represents extreme market greed and prices could be inflated above value. real, foreshadowing a future decline.
After Bitcoin fell 10.4% to $ 43,313 this week, the index revealed a score of 27. The last time it printed a number at or below that level was a year ago. almost 3 months today, July 26th.
The index recorded one-year lows on July 21 with a score of 10, followed by a parabolic rally to 5-month highs of 79 between late August and early September. This volatility has been paralleled across the cryptocurrency market, with prices frequently showing double-digit numbers.
Related: Bitcoin Bounces To $ 43,000 Ahead Of New Crypto Comments From SEC Chairman Gensler
Reddit user u / _DEDSEC_ adapted the common “Buy the rumor, sell the news” business mantra and said traders should “buy fear, sell greed”.
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