Amid Bitcoin’s $ 47,000 Return, Crypto Market Sentiment Shifts To ‘Extreme Fear’
Sentiment in the crypto market drifts from reality as ‘extreme fear’ persists, despite Bitcoin’s slight recovery above $ 47,000.
Bitcoin (BTC) appears to have found stability around the $ 47,000 mark after losing nearly 11% after falling from December 27 highs of $ 52,100, but crypto market sentiment is still under shock.
According to the Crypto Fear & Greed Index, as of December 30, emotions are now at their highest level in 10 days, when Bitcoin has fallen to nearly $ 45,500. The index currently sits at 22, reflecting “extreme fear”.
The Crypto Fear and Greed Index takes into account market sentiment, which refers to the emotional behavior of traders and investors towards a particular asset.
Cryptocurrencies were mostly lower at the time of publication, although market conditions have stabilized after the previous day’s sell-off. Algorand, Near Protocol and Cosmos have posted gains at the time of publication.
Bitcoin shows a slight rebound
Bitcoin was approaching the 200 moving average (currently at $ 47,811), which could indicate that a rally of relief could occur in the near term. Shifting cryptocurrency market sentiment towards ‘extreme fear’ could be a sign that investors are overly worried, which could mean a buying opportunity for investors against the tide.
As U.Today reported earlier, Bitcoin traders expect the BTC rally to take full shape in the first week of 2022. Bitcoin was trading at $ 47,542 at the time of publication. , up 2.31% on the day.
Bitcoin fell almost 31% from its all-time Nov 10 highs of $ 69,000, which is the largest pullback (percentage drop from top to bottom) since September. Typically, Bitcoin experiences sharp declines between 10% and 20%, even in a bull market. Sometimes withdrawals can extend well beyond 30%, which can take a long time to recover.