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