Bitcoin Market Stays Fearful For Third Straight Week

Information reveals the Bitcoin concern and greed index has continued to show low values for the third straight week because the market stays fearful.

Bitcoin Worry And Greed Index At the moment Factors At “Worry”

In accordance with the newest weekly report from Arcane Research, the BTC market has now remained fearful for the third consecutive week.

The “concern and greed index” is an indicator that tells us what the final sentiment amongst buyers within the Bitcoin market at present is.

The metric makes use of a numeric scale that runs from one to hundred for representing this sentiment. All values above fifty signify that the market is grasping proper now

However, indicator values under the cutoff present that the market sentiment is that of concern in the meanwhile.

Finish values of above 75 and under 25 symbolize investor sentiments of maximum greed and excessive concern, respectively.

Traditionally, tops have tended to kind in periods of maximum greed, whereas bottoms have fashioned throughout excessive concern.

Due to this, some buyers imagine that it’s finest to purchase in the course of the former, whereas the latter intervals are finest for promoting.

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Contrarian investing is a buying and selling approach that makes use of this concept. This well-known quote from Warren Buffet encapsulates the philosophy: “Be fearful when others are grasping, and grasping when others are fearful.”

Now, here’s a chart that reveals the pattern within the Bitcoin concern and greed index over the previous 12 months:

The BTC market appears to be fearful in the meanwhile | Supply: Arcane Research's The Weekly Update - Week 16, 2022

As you’ll be able to see within the above graph, the Bitcoin concern and greed index is at present displaying a price of 27, akin to a sentiment of concern.

This worth is correct on the sting of maximum concern, and the market has stayed round this worth for the previous few weeks. Throughout that interval, the indicator’s worth has additionally had some dips to excessive concern.

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The rationale behind this pattern could also be the truth that BTC has been caught in consolidation for some time now, displaying no actual motion.

The report means that buyers appear to be anxiously ready for Bitcoin to make a transfer earlier than they take any motion.

BTC Value

On the time of writing, Bitcoin’s value floats round $39k, down 7% within the final week. Over the previous month, the crypto has misplaced 12% in worth.

The under chart reveals the pattern within the value of the coin during the last 5 days.

Seems to be like the worth of the crypto has plunged down over the previous day | Supply: BTCUSD on TradingView

Featured picture from Unsplash.com, charts from TradingView.com, Arcane Analysis