The crypto fear and greed index indicates that the market has returned to the extreme fear zone, with Bitcoin falling to $36k once more.
Recently, as the cryptocurrency’s price returned above $38k, the market attitude shifted to dread. However, the price of BTC has dropped again today, resulting in a return to significant fear emotion.
The “fear and greed index,” which reflects the general attitude among Bitcoin investors, is relevant here.
To indicate sentiment, the measure has a numeric scale ranging from 0 to 100. Values less than fifty indicate that the market is now afraid, while values greater than fifty indicate that the market is greedy.
Extreme values of greater than 75 or less than 25 indicate that investors are currently experiencing extreme greed or fear, respectively.
Extremely high levels of the indicator are typically found near tops. On the other side, extremely low levels may exist during bottom development.
As a result, some traders feel that it is advisable to sell during times of great greed and buy during times of extreme fear. “Be fearful when others are greedy, and greedy when others are fearful,” Warren Buffet once said.
Now, here’s a graphic from the most recent weekly Arcane Research report that demonstrates how the Bitcoin fear and greed index recently increased in value:
As shown in the graph above, the Bitcoin market has been exceedingly scared for some time now as the price has continued to fall.
However, the feeling shifted back to dread a few days ago when the cryptocurrency began to rebound. The indicator reached a new high of 30 on Sunday, the highest since 2022.
When the report with the chart was released, the metric still had a value of 26. However, now that Bitcoin has fallen below $37,000, market sentiment has moved back to intense anxiety.
It is yet unknown when sentiment will begin to improve significantly. During the May-July 2021 mini-bear period, severe fear levels persisted for several months before the bottom was reached.
