February 8, 2023

The index of fear and greed says oversold Bitcoin

The index of fear and greed says oversold Bitcoin

As bitcoin and other cryptocurrencies experienced a serious fall, investors wondered “why the market has fallen so sharply ”and“ are new purchases justified with such sharp declines. ”

Over the past two days, the price of bitcoin has fallen by aboutby 16%, dropping to the previous key support level at $ 9500, then moving below the level of $ 8400. Altcoins got even more: over the past 24 hours, Bitcoin SV fell by about 19%, Bitcoin Cash - by 21%.

Although technical analysis indicatesfor further short-term losses, some key market signals may indicate that the market will soon enter the oversold zone, and in the coming days there will be opportunities to buy BTC.

On June 7, almost three weeks before Bitcoin reached an 18-month high close to $ 14,000, the crypto fear and greed index reached 27, registering “fear”.

On Wednesday, the index fell to 15, registering "extremefear ”, which could be a sign that investors are too anxious and eager to sell to make a profit. This seemingly bearish mood on this index can be interpreted as a signal to buy.

The index of fear and greed says oversold Bitcoin

According to some analysts, if the stockmarkets will continue to lose and global economic signals will continue to weaken as China and the US trade war, investors may turn to bitcoin as a safe haven in the coming weeks.