Bitcoin Market Sentiment Moving Out Of ‘Extreme Fear’ Amid Price Recovery
The crypto market sentiment has now started to move into the positive, after one of its longest stretches in ‘extreme fear’. Finally there seems to be light at the end of the tunnel as the market pulls itself out of ‘extreme fear’ to just ‘fear’.
Bitcoin price soared over the last 7 days or so, witnessing the digital currency’s price push past $36,000 for the first time in over a month, and all the way to $40K.
Bitcoin price dipped back to $36K levels after that, as lot of BTC was liquidated once the price hit $40K yesterday. However, the bullish trend continued to persist in the market as the price steadily recovery, and at the time of writing Bitcoin is trading above $40K again.
The market had been in extreme fear for over a month before this recent break. Dropping points continuously on the Fear & Greed Index published by Arcane Research.
The cryptocurrency had seen declining prices since it had hit a new all-time high in April. Bitcoin had hit $64k and then started to trend downwards in the ensuing months. The market continued to decline into extreme fear territory as the price dropped.
Fear & Greed Index From ‘Extreme Fear’ to ‘Fear’
The Fear & Greed Index saw a significant recovery this week as prices showed signs of recovery. The Index saw a sharp recovery up from 19 in extreme. Now sitting at 32, pushing the index into the fear territory.
The Fear & Greed Index had continued to decline for the better half of last week. Bottoming out at 10 on Wednesday, July 21st. But over the following days experienced a steady climb up into the weekend. With the market out of extreme fear, overall market sentiments have improved.
Bitcoin and other cryptocurrencies saw a steady increase over the weekend. Culminating in a bullish outbreak as the weekend drew to a close to ushering in the new week.
Despite the recovery, the index continues to remain in the fear territory. Meaning the crypto market is not completely out of the woods yet. And overall market sentiments are still a long way from what was experienced from November last year to March this year.
At the time of this writing, the price of bitcoin is currently trading above $40,000. With an overall market cap of $750 billion.
