Crypto Market Bloodbath Creates Largest Stretch Of Fear Since April Peak

2021-12-15 10:22

As the downtrend in the crypto market continues, so does extreme fear. What’s inspiring the sell-off? Is it Omicron? Or is it Evergrande? Is it a conspiracy? Or is it the holidays? All those questions and more have had the Fear and Greed Index pointing left for a month straight. What does this mean? Where do we go from here? That’s what we’re here to explore. 

Related Reading | Blood In The Streets: Crypto Market Becomes Fearful As Bitcoin Dives

But first, let’s talk about the Fear and Greed Index. One of the many Bitcoin indicators, it measures the market’s general sentiment at the moment. Zero is extreme Fear. A hundred is extreme Greed. And the indicator oscillates between those two at any given time. It’s been said that the crypto market is very emotional. The Fear and Greed Index is there to keep investors from making irrational decisions based on sentiment alone. 

Fear And Greed Index shows Extreme Fear | Source: Arcane Research’s The Weekly Update What’s The Fear And Greed Index Saying Now?

According to Arcane Research’s The Weekly Update, fear has settled in:

“The Fear and Greed Index has now signaled “Fear” or “Extreme Fear” for almost one month straight. The last time we saw such a prolonged fearful market sentiment was at the beginning of the summer when the market sentiment was fearful for more than two months straight. With the sustained consolidation of bitcoin, the late autumn euphoria has dampened, and the overall sentiment seems very negative at the moment.”

The report also says that, “during steady sell-offs, bitcoin tends to outperform the overall crypto market.” And this time was no exception, BTC “outperformed all indexes so far in December, seeing a negative return of -18% after a relatively flat second week of trading this month.” On the other hand, “the Small Cap index has seen a loss of nearly a third of its value in December.“ What does this mean in general?

“The bitcoin dominance has risen by 1.13% in the last week. This is the third time we’re seeing bitcoin dominance bottom at 40% in 2021. The last two times were May 19th and Sep 13th. It seems that the 40% threshold is a difficult area for alts to sustain”

BTC price chart for 12/15/2021 on Eightcap | Source: BTC/USD on TradingView.com What Can We Expect In The Future?

To get our dose of technical and on-chain analysis, let’s give the mic to this month’s Fear & Greed Index Newsletter:

“A major factor here is the cycle support band. We cannot ignore the fact that Bitcoin had just closed 2 consecutive weeks below the market support band. Historically, this meant that we’d see a longer consolidation phase before we could have a true reversal in the trend. The takeaway here is this, as long as Bitcoin closes the week below the cycle support band, we shouldn’t expect any major breakout in price to take place.”

Every dog has its day, though. A week ago, analyzing a very similar market sentiment, NewsBTC informed you:

“A “Fear and Greed” Index on Extreme Fear levels, according to certain analysts, has historically preceded crypto market local bottoms. However, a run into new highs could see an obstacle as the macro-economic outlook turn complex.”

Related Reading | Bitcoin Price Bloodbath: Is El Salvador A “Sell The News” Event?

It’s also important to remember that only two months ago, we were in a similar situation and the sentiment did a complete 180 in a matter of weeks. 

“The indicator dipped all the way down to extreme fear on 30th September, but in under two weeks the sentiment has already rebounded back to extreme greed. The report notes that this shows how fast the sentiment can change among the crypto market.”

With that being said, and a disclaimer that this isn’t financial advice, in a situation like this there’s only one thing we could say… hodl the line! 

Featured Image: PublicDomainPictures on Pixabay| Charts by TradingView

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Market.space (MASP) íà Currencies.ru

$ 0 (+0.00%)
Îáúåì 24H $0
Èçìåíåèÿ 24h: 0.00 %, 7d: 0.00 %
Cåãîäíÿ L: $0 - H: $0
Êàïèòàëèçàöèÿ $0 Rank 99999
Äîñòóïíî / Âñåãî 0 MASP

fear crypto market those questions conspiracy evergrande

fear crypto → Ðåçóëüòàòîâ: 126


Possible Factors Behind Coinbase Trading Volume Drop of Over 83%

There seems to be a strong tsunami that is hitting the entire cryptocurrency market, irrespective of the activities involved, whether coin investment or the crypto exchange market. Presently, Coinbase is the largest cryptocurrency exchange and it experienced some diversification into hedge fund management in other to reduce the fear that institutional investors have regarding the […] The post Possible Factors Behind Coinbase Trading Volume Drop of Over 83% appeared first on ZyCrypto.

2018-8-22 01:36


How the Fear of Traders Always Leads The Crypto Market In Constant Decline

How does the fear of crypto traders affect the market? Before I start I’d like to clarify what I mean by fear. By fear I simply mean the belief that we are still going to go lower. An example is the people who have been saying since about February that we are going to see […] The post How the Fear of Traders Always Leads The Crypto Market In Constant Decline appeared first on ZyCrypto.

2018-8-16 14:18


Uncertainties about Crypto Security leads to Drastic Fall of Crypto Prices

The past couple of hours have been dramatic in the cryptocurrency market as prices seem to be on a free fall across boards. We can only speculate, but this seems to be linked up to the fact that there are uncertainties concerning how to securely store these new form of virtual currencies without the fear […] The post Uncertainties about Crypto Security leads to Drastic Fall of Crypto Prices appeared first on ZyCrypto.

2018-7-10 22:45


Ôîòî:

The Crypto Refresh June 8th 2018

It’s time for another weekend addition of our famed publication, The Crypto Refresh. If its your first time here, welcome to paradise. If you’re an attuned Crypto Refresh veteran, welcome back. If you have no idea what’s happening, how you got here or what you’re doing here, fear not… just read on, you might enjoy it! This week has seen the cryptocurrency markets take somewhat of a turn.

2018-6-11 15:00