One of the most used technical indicators known, as the market sentiment indicator, has recently hit 10, the indicator’s lowest point this year. Crypto analysts and traders use the Fear and Greed index to understand the market situation. Despite the new low, Bitcoin continues to see a gradual uptrend above the $30,000 mark.
The index has helped analysts predict the possible price action from Bitcoin. The indicator collates different figures gotten from diverse sources indicating sentiments and emotions of digital asset holders. After getting figures, the indicator reduces it to a figure, seen as Fear and Greed index.
B-word Conference Fails To Influence Market Sentiment
The world’s most popular cryptocurrency, Bitcoin, has witnessed continues sell-offs, which has significantly pushed it from its all-time high. However, the coin is currently green due to the new activities in the market. Some sources have linked the new increase to an upcoming event, the B-word conference. The B-word conference would have some of the industry’s biggest influencers in attendance, such as Jack Dorsey and Elon Musk. Despite the positive news from the crypto community, sources explained that the Fear and Greed index had not increased. It seems that crypto holders are predicting price falls based on the indication from moving averages.
The current state of the index could be positive news due to the market-to-index correlation. In March 2021, the Fear and Greed index had a value of 10 before it commenced the bull run, which saw notable price increases in the market. The digital market became highly attractive for participants, and many joined the community to record attractive profits. Similarly, Bitcoin is known to see some price increases within three months after the Fear and Greed index hits new lows. However, this would be determined by the coin’s price movement in charts.
Market Shows Signs Of Recovery
The crypto community faced notable losses due to the rapid sell-off, which saw Bitcoin fall to $30,000. The coin’s market cap has decreased, and this caused panic selling, which dragged the coin’s price to new lows. For Bitcoin to restart its bull run, it would need the market bulls to stay committed and push the price above its current resistance. The coin is not the only cryptocurrency to face the continuous falls as altcoins have continuously lost value based on the market’s present outlook. Although the industry is on the verge of recovery, more sell-offs would likely lead to substantial support loss.
The Fear and Greed index helps analysts to understand the risk and fear levels market participants have at that time. If greed is high, then crypto holders are willing to take huge risks, pushing Bitcoin’s value to a new high. Market sentiments are mainly based on the emotions of the community members and how it affects their decisions. If fear dominates the market, then the industry would see more sell-offs. Traders have used this indicator to minimize losses while maximizing gains.
Tokenhell.com produces top quality content exposure for cryptocurrency and blockchain companies and startups. We have provided brand exposure for thousands of companies to date and you can be one of them too! All of our clients appreciate our value / pricing ratio. Contact us if you have any questions: email@example.com. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.