The latest cryptocurrency news yesterday showed that the Bitcoin investors were bullish. In fact, everything was good as Bitcoin remained in the low $10,000 for a number of days – but fear and greed stepped in and made Bitcoin lose a lot of its value, visiting the four-digits region again.
Bitcoin (BTC) even tapped $11,000 after a surge of buying pressure. As many best cryptocurrency news sites reported, this surge made some analysts bullish as the reclamation of $10,800 and other key technical levels was a positive sign.
However, the entire party ended quickly and there has been a massive sell-off on Tuesday, triggered by the fear and greed which bulls could not resist. At the time of writing, Bitcoin is below $10,000 and is failing to remain in the five digits region. The most dominant cryptocurrency is down by 4% on the day and the altcoin news show that most of the alts are bleeding too.
As the Bitcoin Fear and Greed Index showed, the sudden reversal resulted in a reading of five – which is the index’s lowest value in its history. This is crazy considering that BTC is still trading over 300% higher than its bottom price of $3,150.
Fear and greed index is at 5 – the lowest value in history.$BTC $BTCUSD #bitcoin pic.twitter.com/x4SPn2kjeY— CryptoHamster (@CryptoHamsterIO) August 22, 2019
Fear and greed index is at 5 – the lowest value in history.$BTC $BTCUSD #bitcoin pic.twitter.com/x4SPn2kjeY
— CryptoHamster (@CryptoHamsterIO) August 22, 2019
Even though the index and its reading may seen entirely arbitrary, take a look at the bullish momentum that Bitcoin has experienced in the first half of 2019 – and you will see that the index is backed by data.
In fact, the website that hosts the Fear and Greed index claims that it analyses a fair mix of volatility, market momentum as well as volume, social media trends, surveys, dominance and Google Trends – in order to get the gist of how cryptocurrency investors are faring.
According to the Fear and Greed index and a recent description of it:
“The crypto market behavior is very emotional. People tend to get greedy when the market is rising which results in FOMO (Fear of missing out). Also, people often sell their coins in irrational reaction of seeing red numbers… Extreme fear can be a sign that investors are too worried. That could be a buying opportunity.”
The coming altcoin news show that the index had encountered similar readings in December last year.
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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