Data shows the Bitcoin market has mostly showed a sentiment of fear and extreme fear for around five months now as the price continues to struggle.
Bitcoin Fear And Greed Index Continues To Point At A Fearful Market
As per the latest weekly report from Arcane Research, the crypto market has remained fearful this week as prices show no signs of recovery.
The “fear and greed index” is an indicator that tells us about the general sentiment among Bitcoin and crypto investors.
The metric uses a numeric scale that runs from one to hundred for displaying the sentiment. Values below fifty usually denote “fear,” while values above the mark indicate “greed.”
Index values of above 75 and below 25 signify that the market is facing extreme greed and extreme fear, respectively.
The fear and greed index being in the vicinity of fifty may be taken as a sign that the sentiment is rather neutral at the moment.
Now, here is a chart that shows the trend in the Bitcoin fear and greed index over the past year:
It looks like the indicator is still observing a rather low value | Source: Arcane Research's The Weekly Update - Week 17, 2022
As you can see in the above graph, the Bitcoin fear and greed index has a value of 27 this week, showing that the market is near extreme fear.
Related Reading |Altcoin Aversion: Why Bitcoin And Stablecoin Dominance Is On The Rise
With the exception of some brief spikes to neutral sentiment, this fearful sentiment has griped the crypto market for over five months now.
Bitcoin has been facing carnage during this period and so far there hasn’t been any signs of it stopping anytime soon.
Related Reading |Bitcoin Taker Buy-Sell Ratio Rebounds Back Into “Hold” Zone
The report notes that one of the factors that go into measuring the sentiment is the relative performance of altcoins against Bitcoin. Recently, altcoins have been doing very badly, thus adding to the fear sentiment.
Currently, it’s unclear when a neutral or greedy sentiment may return to the crypto market. Prices will likely have to show any real rebounds if the investor mindset has to improve.
At the time of writing, Bitcoin’s price floats around $39k, up 1% in the last seven days. Over the past month, the crypto has lost 15% in value.
The below chart shows the trend in the price of the coin over the last five days.
Looks like the price of the crypto has surged up over the last twenty-four hours | Source: BTCUSD on TradingView
Bitcoin seems to have been continuing its consolidation further this week as the coin has still remained trapped below the $40k mark.
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research