3 months ago
A multi-day ‘extreme fear’ speechmaking successful a widely-followed sentiment scale could beryllium indicative of bitcoin prices mounting a bottommost earlier moving higher successful the coming weeks — with a antecedently akin setup preceding a 200% emergence successful BTC.
The Fear and Greed Index, which measures capitalist emotions successful markets similar bitcoin, ranging from 0 (lowest sentiment) to 100 (highest sentiment), has shown an extended ‘extreme fear’ speechmaking successful the past respective days arsenic prices whipsawed betwixt the $83,000 and $95,000 levels.
The scale helps place whether investors are excessively frightened (potential buying opportunity) oregon excessively greedy (possible marketplace correction), tending to enactment arsenic a contrarian indicator successful the abbreviated term. It is based connected terms volatility and momentum, societal media sentiment, Google trends information and bitcoin’s wide marketplace share.
“Bitcoin’s plunge into 'Extreme Fear' connected the Fear & Greed Index, its archetypal since September 2024, erstwhile BTC traded astatine $53K, echoes a pivotal humanities low,” Vincent Liu, CIO astatine trading steadfast Kronos Research, told CoinDesk successful a Telegram message. “Back then, Bitcoin’s worth doubled implicit the adjacent 3 months, hinting astatine a imaginable buying accidental for savvy investors.”
“Amid today’s marketplace volatility, fueled by commercialized tariffs and broader macroeconomic uncertainties, this infinitesimal could look arsenic a aureate introduction point, provided planetary commercialized tensions easiness and wide economical sentiment strengthens,” Liu added.
Bitcoin and respective large tokens, including Cardano’s ADA, Solana’s SOL and xrp (XRP), surged Sunday pursuing President Trump's announcement of a U.S. crypto strategical reserve.
But the archetypal excitement was short-lived owed to profit-taking amid the deficiency of factual plans and a risk-off temper successful broader equity markets.
Trump's tariff announcements connected Canada, Mexico, and China further impacted markets, and traders are present awaiting much clarity from the upcoming White House Crypto Summit for cues connected aboriginal positioning.
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