Bitcoin Fear and Greed Index slides into the fear zone

Amid the euphoria and predictions that followed Bitcoin’s Bull Run to $42,000, the digital asset quickly slipped to the $30k range, dashing the hopes of all those who had set the next price target at $50k. Since then, had spent more time below $40k, struggling to break through key resistance.

A struggling Bitcoin has affected the Crypto Fear and Greed index. The crypto market sentiment which was “extremely greedy” just a month ago has shifted to “Fear.”

As of January 22, the Crypto Fear and Greed index had sharply dropped to a value of 40 from 75 the previous day, and 85 the previous week. This is an indication that within 24 hours the market emotions and sentiments about Bitcoin and other large cryptocurrencies moved from “Extreme Greed” to “Fear.” The last time the figures were this low was in early October 2020, when Bitcoin was exchanging hands at around $10,500.

The data from Alternative.me suggests that investors are becoming worried about Bitcoin’s inability to retake the $40k region. It may also be linked to Bitcoin’s double-spend rumor that was circulated yesterday. On the flip side of the fear is an opportunity to buy the dip.

Several industry players have begun predicting lower prices for Bitcoin. Scott Minerd who is the chief investment officer at Guggenheim, for instance, predicted a drop to $20,000.

Continue reading on BTC Peers

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

×