Data shows that the feelings between Bitcoin merchants have deteriorated into great fear as BTC decreased to start the new week.
Bitcoin has seen another setback to start Monday
Bitcoin renewed optimism between investors last week, as its price showed signs of recovery, but it seems that the cryptocurrency decided to start the two by breaking these hopes.
Below is a scheme that shows how the last path of origin seemed.
Looks like the price of the coin has been sliding down over the last few days | Source: BTCUSDT on TradingView
As visible in the graph, Bitcoin was trading about $ 86,000 only yesterday, but during the past day, the original achieved a great success to a decrease in its price to 82,300 dollars.
The rest of the digital assets sector also printed red returns during this window, despite the interesting, ETHEREUM (ETH) showed greater strength than the first cryptocurrency, with a decrease in the price of about 2 %.
With the shrinkage at the market level, it is also natural that investor morale is also treated.
The Crypto Fear & Greed index returned to the intense fear area
“Fear & Greed Index” is an indicator created by substitute This tells us about the average feelings between traders in Bitcoin markets and the broader cryptocurrency market.
The investor's mentality determines based on the following five factors data: trading volume, market ceiling dominance, social media feeling, fluctuations, and Google Trends. It represents feelings as a result between 0 and 100.
All values under the 47th mark are linked to the feeling of fear, while those that exceed 53 indicate that investors as a whole show greed. The region is compatible between these two thresholds with a neutral mentality.
Besides these three regions, there are also two “extremist” regions, known as extreme greed (which occurs above 75) and extreme fear (less than 26).
It currently happens that the market is at the end of these special areas, as the latest value of fear and greed indicates.
The value of the index appears to be 20 at the moment | Source: Alternative
As visible above, the Bitcoin Fear & Greed index has a value of 20 now. Only yesterday, the scale was about 27 marks, which put the market morale in the regular fear area.
The trend in the Fear & Greed Index over the last twelve months | Source: Alternative
Compared to the decrease of 15 by the month, the value of the indicator has still improved even after the collapse. However, it remains to see whether the feelings will get worse in the coming days or not.
Historically, the extremist areas were of great importance for Bitcoin and other digital origins, as in these feelings, the prices were tending to approach from the top or bottom.
The relationship was opposite, which means that the invested despair led to a bottom, and it led the excessive noise to a top. As such, the last decrease in extreme fear may indicate a decrease that may be near Bitcoin and others.
Distinctive image from Dall-e, alternative.me, Chart from TradingView.com
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