Why The Crypto Fear & Greed Index Points To Sustainable Recovery
03 August 2022 - 9:00PM
NEWSBTC
The crypto fear and greed index shows that while investors are
still cautious, the market sentiment is nonetheless making
sustainable recovery. Crypto Fear And Greed Index Surges Up, But
Remains In “Fear” Territory As per the latest weekly report from
Arcane Research, the market sentiment rose to the best sentiment
since April of this year on Saturday. The “fear and greed index” is
an indicator that measures the general sentiment among investors in
the crypto market. The metric uses a numeric scale that runs from
zero to hundred for representing this sentiment. All values above
50 signify a greedy market, while those below the mark suggest
fearful investors. Values approaching the end of the range of above
75 or below 25 indicate “extreme greed” and “extreme fear”
sentiments, respectively. Historically, bottoms have tended to form
during periods of extreme fear, while tops have occurred during the
other extreme sentiment. Because of this, some investors believe
the former periods bring ideal buying opportunities with them,
while the latter ones can be suitable selling points. Now, here is
a chart that shows the trend in the crypto fear and greed index
over the last year: Looks like the value of the metric has been
steadily climbing up in recent days | Source: Arcane Research's The
Weekly Update - Week 30, 2022 As you can see in the above graph,
just a while ago, the crypto fear and greed index had been inside
the extreme fear territory for a couple of months, making it the
longest ever streak of rock-bottom mentality. But, during the last
few weeks the indicator has observed some growth as the various
coins in the market have simultaneously seen recovery. At the time
the report came out (which was yesterday), the fear and greed index
had a value of “31.” This implies a fearful market. Today, the
sentiment has slightly improved as the value of the indicator is
now “34,” which is however still firmly inside the fear territory.
The value of the indicator is 34 at the moment | Source:
Alternative On Saturday, the metric came close to stepping out of
the fear territory as it attained a value of “42.” This happens to
be the highest value the indicator has seen since April. But before
a breakout into greed could occur, the fear and greed index slumped
back down. The latest trend suggests while the market sentiment has
been improving, the investors have remained cautious. This may pave
way towards a slower, but more sustained recovery in the market.
BTC Price At the time of writing, Bitcoin’s price floats around
$23.3k, up 9% in the past week. The value of the crypto seems to
been trending sideways during the last few days | Source: BTCUSD on
TradingView Featured image from Quantitatives on Unsplash.com,
charts from TradingView.com, Arcane Research
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