After Three Months Of Fearful Market, Bitcoin Sentiment Turns Greedy Again

Keshav Verma

1 year ago

3 mins read

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Data shows the Bitcoin market has turned greedy again after almost three months of fear sentiment among investors.

Bitcoin Market Becomes Greedy Again After Almost Three Months Of Fear

The relevant indicator here is the “fear and greed index,” which tells us what the general sentiment among investors currently is.

The metric uses a numeric scale that goes from zero to hundred for representing this sentiment. All values below fifty fall into the “fear category,” while those above belong to “greed.”

When the index shows extreme values of above 75 and below 25, the market sentiment is that of extreme greed and extreme fear, respectively.

Some investors prefer to sell when the market is extremely greedy as tops have historically formed during such periods. Similarly, they also think buying during extreme fear is better as bottoms tend to usually occur then.

There is a famous Warren Buffet quote that resonates with this philosophy: “be fearful when others are greedy, and greedy when others are fearful.”

Now, here is a chart from this week’s Arcane Research report that shows the trend in the Bitcoin fear and greed index over the past year:

The indicator's value seems to have sharply risen recently | Source: The Arcane Research Weekly Update - Week 5

As you can see in the above graph, when the report came out yesterday the market sentiment had almost exited the fear territory as the indicator showed a value of 48.

Since November, the market had been quite fearful, often dipping into extreme fear. But recently the metric has observed a sharp uptrend, and today, the investor sentiment is finally back to greed for the first time in three months as the index’s value is now around 54.

The Bitcoin fear and greed index has now crossed the fifty mark | Source: Alternative.me

The market sentiment turning to that of greed can prove to be bullish for the price of Bitcoin as sucha sentiment usually occurs during bull rallies.

BTC Price

At the time of writing, Bitcoin’s price floats around $43.5k, up 13% in the last seven days. Over the past month, the crypto has gained 5% in value.

The below chart shows the trend in the price of BTC over the last five days.

BTC's price seems to have surged over the past few days | Source: BTCUSD on TradingView

Over the past couple of weeks, Bitcoin has enjoyed some sharp uptrend. Yesterday, the price of the crypto briefly broke past the $45k mark, but it wasn’t long before the coin came back down to the current levels.

Featured image from Unsplash.com, charts from TradingView.com, Arcane Research

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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