Five Months Of Fear: When Will The Bitcoin Carnage End?

Keshav Verma

1 year ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Data shows the Bitcoin market has mostly showed a sentiment of fear and extreme fear for around five months now as the price continues to struggle.

Bitcoin Fear And Greed Index Continues To Point At A Fearful Market

As per the latest weekly report from Arcane Research, the crypto market has remained fearful this week as prices show no signs of recovery.

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

The metric uses a numeric scale that runs from one to hundred for displaying the sentiment. Values below fifty usually denote “fear,” while values above the mark indicate “greed.”

Index values of above 75 and below 25 signify that the market is facing extreme greed and extreme fear, respectively.

The fear and greed index being in the vicinity of fifty may be taken as a sign that the sentiment is rather neutral at the moment.

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

It looks like the indicator is still observing a rather low value | Source: Arcane Research's The Weekly Update - Week 17, 2022

As you can see in the above graph, the Bitcoin fear and greed index has a value of 27 this week, showing that the market is near extreme fear.

With the exception of some brief spikes to neutral sentiment, this fearful sentiment has griped the crypto market for over five months now.

Bitcoin has been facing carnage during this period and so far there hasn’t been any signs of it stopping anytime soon.

The report notes that one of the factors that go into measuring the sentiment is the relative performance of altcoins against Bitcoin. Recently, altcoins have been doing very badly, thus adding to the fear sentiment.

Currently, it’s unclear when a neutral or greedy sentiment may return to the crypto market. Prices will likely have to show any real rebounds if the investor mindset has to improve.

BTC Price

At the time of writing, Bitcoin’s price floats around $39k, up 1% in the last seven days. Over the past month, the crypto has lost 15% in value.

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

Looks like the price of the crypto has surged up over the last twenty-four hours | Source: BTCUSD on TradingView

Bitcoin seems to have been continuing its consolidation further this week as the coin has still remained trapped below the $40k mark.

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.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.