Extreme Fear Back In Focus: Is It Time To Buy Bitcoin?

News BTC

Data shows the Bitcoin market has again fallen back into a state of extreme fear as the price has plummeted down over the past week.

Bitcoin Fear And Greed Index Says Market Is Extremely Fearful

As per the latest weekly report from Arcane Research, extreme fear has returned to the BTC market, suggesting now may be the time to buy.

How To Get Free Crypto  

The “fear and greed index” is an indicator that tells us about the general sentiment among investors in the Bitcoin market.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

The index uses a numeric scale that runs from one to hundred for representing the sentiment. All values above the “50” point signify greed, while those below the cutoff imply the market is fearful right now.

Values towards the end of the range of above 75 and below 25 indicate sentiments of extreme greed and extreme fear, respectively.

Historically, bottoms have tended to form during periods of extreme fear while tops have occurred when the market is extremely greedy.

Coinbase Banner  
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

Get 110 USDT Futures Bonus for FREE!

Because of this, some investors believe that buying during extreme fear and selling during extreme greed in optimal.

Related Reading | Bitcoin Long-Term Holders Start Capitulating Amid Panic

“Contrarian investing” is a trading method that follows this idea. Warren Buffet’s famous quote best sums the philosophy up:

Be fearful when others are greedy, and greedy when others are fearful.

Now, here is a chart that shows the trend in the Bitcoin fear and greed index over the past year:

The value of the indicator seems to have plunged down in the last week | Source: Arcane Research's The Weekly Update - Week 18, 2022

As you can see in the above graph, the Bitcoin fear and greed index now has a value of 10, suggesting that the sentiment has declined to extreme greed.

The report notes that the value of the metric hasn’t been worse than this since the COVID crash back in March 2020.

FreeBitcoin Banner  

As mentioned before, such a sentiment usually brings with it buying opportunities. However, even so it’s not a sure buy signal either.

Related Reading | Will Mercury In Retrograde Bring A Mood Shift In Bitcoin?

The last time the index reached a similar value was back in January of this year. Then, the bottom didn’t actually form until two weeks after the sentiment turned extremely fearful and Bitcoin observed another drop of 20%.

So, it’s not certain if now is the time to buy. But nonetheless, such a deep extreme fear sentiment might just be a signal for investors to look out for bottoms forming in the near future.

BTC Price

At the time of writing, Bitcoin’s price floats around $29.5k, down 25% in the past week.

Looks like the price of the crypto has observed a sharp drop today | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research

Go to Source
Author: Hououin Kyouma

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.