Bitcoin’s price has recently dropped, and market sentiment is reflecting extreme pessimism. According to 10x Research, a firms that analyzes market emotions, their “Greed & Fear” Index has hit a record low, indicating a strong feeling of fear among investors.
This index measures market sentiment on a scale from 0 to 100. A score below 10 shows extreme fear, while above 90 indicates extreme greed. Currently, the index is below 5, a concerning signal for many.
Markus Thielen, the firm’s founder, pointed out that the 21-day moving average has also dipped to 10%. Historically, this level often predicts a tactical low, meaning it could be the point where prices might bounce back.
Thielen cautions, though—just because sentiment is low doesn’t mean the price will rise immediately. In the past, following similar sentiment lows, Bitcoin continued to decline for a while before making a slight recovery. For instance, back in March, the index dropped, and although Bitcoin rallied 10% shortly after, it still fell further before stabilizing.
Currently, Bitcoin is trading around $84,800, a drop from a recent low of $80,880. This week, prices have fallen by 10%, and they are 23% lower compared to last month.
Expert Insight
Experts often suggest that periods of extreme pessimism can create buying opportunities. Financial analysts argue that prices might rebound when the market sentiment shifts from fear to stability.
Recent Trends
Social media is buzzing with discussions about Bitcoin’s current state. Many investors are sharing their thoughts on platforms like Twitter and Reddit, often debating whether this is a good time to buy or if they should hold off until prices stabilize further.
For a deeper understanding of market sentiments and analyses, visit trusted sources like CoinDesk or Investopedia for reliable reports and trends in the cryptocurrency markets.
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