Bitcoin Fear & Greed Index Falls To Extreme Fear, Is The Bottom Close?
September 07 2024 - 6:30AM
NEWSBTC
The recent Bitcoin and crypto market crash has seen prices plunge
into the red across the board. As a result, sentiment among crypto
investors has plunged rapidly and this has caused the Fear &
Greed Index to plunge into the Extreme Fear territory. This
suggests that investors are less likely to put money into the
market, but it could also come with good news for the market. Fear
& Greed Index Sitting At Extreme Greed The Bitcoin Fear &
Greed Index is one of the best indicators of telling how investors
are feeling toward the market at any time. This index uses a scale
of 1-100, representing sentiments ranging across Fear, Extreme
Fear, Neutral, Greed, and Extreme Greed. Each of these can show how
investors are feeling and could be a tell for where the Bitcoin
price could be headed next from here. Related Reading: Shiba Inu
Recovery To $0.000081 ATH Levels Still In Play Usually, when the
Fear & Greed Index is sitting on either extreme, it could mean
that the price is about to swing in the opposite direction. So, for
example, the Bitcoin Fear & Greed Index is in Extreme Greed
could suggest that the price is about to fall, and vice versa. This
trend would be positive for the Bitcoin price right now as the Fear
& Greed Index has fallen into the Extreme Greed territory. As
of Friday, the Fear & Greed Index had fallen as low as 22,
which put it firmly in the Extreme Fear territory. Going by the
Bitcoin price having a tendency to recover when the index is in the
red, it could mean that the price is reaching a bottom. An example
of this is when the Bitcoin Fear & Greed Index fell to 20 in
August, before the crypto market seeing a quick rebound. If that
happens here, the Bitcoin price could be on the verge of a
recovery. Bitcoin Rebound Not Likely In September While the Fear
& Greed Index sitting in the Extreme Fear territory could point
towards a bottom, the rebound may not materialize for a while. This
is because the month of September has historically been very
bearish and expectations are that this month will not be different.
Related Reading: Dogecoin Moving Averages Say Accumulation Has
Ended, Here’s Where Price Is Headed Next Veteran analyst Benjamin
Cowen outlined this in a post on X (formerly Twitter), revealing
that this month is already on track with previous September months.
So far, the Bitcoin price has already fallen 8.16%, and “If BTC
closes the month at this price, it would be a fairly typical
September,” the analyst explains. The avg. return of #BTC in
September is -6.3% So far this month, BTC’s return is already
-8.16%. The only time in the last 5 years where the Sep. monthly
return was worse than this was 2019 (-13.91%) If BTC closes the
month at this price, it would be a fairly typical September
pic.twitter.com/bZ9cRIl9OU — Benjamin Cowen (@intocryptoverse)
September 6, 2024 However, the month of October is usually bullish,
so if this trend continues, then September is likely to end in the
red. But then when October rolls around, prices are expected to
pick back up. Featured image created with Dall.E, chart from
Tradingview.com
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