The Fear and Greed Index shows that Bitcoin’s price is undervalued

The latest data from the cryptocurrency fear and greed index shows that the cryptocurrency market is experiencing a period of investor fear, with a score of 27 out of 100, the lowest score in 3 months.

By leveraging the leading cryptocurrency asset Bitcoin (Bitcoin) As a market representative, experienced Technical analysis tools To inform cryptocurrency traders around the world about the current sentiments and biases in the market.

This data can then be used-according to Other analysis strategies -Determine the possibility of future surges or corrections, and finally determine whether the price level represents an opportunity to buy or sell the market.

The lower number in 100 indicates a shift to extreme market fear and BTC may be undervalued, while a higher number represents extreme market greed, and the price may be higher than the true value, indicating a future decline.

After Bitcoin fell 10.4% this week to $43,313, the index showed a score of 27. The last time the number showed this level or below it was today, nearly 3 months ago, that is, July 26.

The index hit a 1-year low on July 21 with a score of 10, and then rebounded parabolicly to a 5-month high of 79 at the end of August and early September. This kind of volatility has occurred throughout the cryptocurrency market, with prices often appearing in double digits.

Related: Bitcoin bounced back to $43,000 before SEC Chairman Gensler issued new crypto comments

Reddit user u/_DEDSEC_ adapted the common trading motto “buy rumors, sell news” and commented that traders should “buy fear and sell greed”.