Crypto Market Rally Stopped Short Ahead Of Reaching Full-Blown Greed

Keshav Verma

1 year ago

3 mins read

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Data shows the crypto market sentiment almost entered into the greed territory before the latest rally came to an end.

Crypto Fear And Greed Index Shows Investors Are Fearful Right Now

According to the latest weekly report from Arcane Research, the market sentiment is currently just floating above the extreme fear region.

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

The metric uses a numeric scale that runs from zero to hundred for representing this sentiment. When the value of the index is above 50, it means investors are being greedy at the moment.

On the other hand, values of the indicator below this threshold suggest that the market is being fearful right now.

End values of more than 75 and less than 25 imply sentiments of “extreme greed” and “extreme fear,” respectively. Historically, tops have tended to form during periods with the former sentiment, while bottoms have took place in the latter ones.

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

The value of the metric seems to have plunged down in recent days | Source: Arcane Research's The Weekly Update - Week 33, 2022

As you can see in the above graph, the crypto fear and greed index had been steadily rising up during July and first half of August after being stuck in the extreme fear territory for a while.

With the latest rally in the prices of coins like Bitcoin, the market sentiment improved a lot and reached towards the edge of the greed territory.

However, as the rally came down to a stop, the indicator’s value peaked out at 47, just three units short of entering into the greed region.

Since then, the investor mentality has sharply deteriorated as the metric’s value has declined to just 28 now. This is deep into the fear range, and very close to the beginning of the extreme fear zone.

The slow growth in those weeks showed that investors were hesitant to call it a bull market just yet, which is why as soon as the rally ended, the sentiment also quickly dropped back off.

BTC Price

At the time of writing, Bitcoin’s price floats around $21.4k, down 8% in the last seven days. Over the past month, the crypto has lost 5% in value.

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

Looks like the value of BTC has been mostly moving sideways during the last few days | Source: BTCUSD on TradingView

Featured image from Quantitatives on 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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