Data shows the crypto market has been fearful for 171 days already, will the streak continue in October and reach 200 days?
Crypto Fear And Greed Index Points At An Extremely Fearful Market
As per the latest weekly report from Arcane Research, the crypto market has been continuing to show a fear sentiment since April of this year.
The “fear and greed index” is an indicator that measures the general sentiment among investors in the cryptocurrency market.
For representing the sentiment, the metric makes use of a numeric scale that runs from zero to hundred. All values of the index greater than 50 imply the market is greedy, while those below the threshold suggest fearful investors.
In these main sentiments, there are two zones that have historically been particularly important for prices of coins like Bitcoin. These are the “extreme greed” and “extreme fear” regions and they occur at values greater than 75 and below 25, respectively.
The relevance of the extreme sentiments is that tops have usually taken place in the former type of periods, while bottoms have formed in the latter ones.
Now, here is a chart that shows the trend in the crypto fear and greed index over the last year:
The value of the metric seems to have gone down in recent days Source: BTCUSD on TradingView
Featured image from Thought Catalog on Unsplash.com, charts from TradingView.com, Arcane Research Read More