While the downtrend continues in the crypto currency market, it seems that the Fear and Greed Index is still in the “fear” zone. So, what caused the sale on the market?
- The emergence of the Omicron variant?
- Is this the predicament that Evergrande is facing?
- Or are the declines just a correction?
- Or are large investors playing with the market for their own benefit?
Perhaps the most curious question at the end of all these questions is: Bitcoin and will the direction of cryptocurrencies be down or up in the short term? Or will the horizontal course continue for a while yet?
The Fear and Greed Index
Fear and Greed Index, which measures the general condition of investors in the market. In this indicator, zero denotes excessive fear, while 100 denotes excessive greed. While fear dominates the market, investors are afraid to make purchases and take risks, but when greed begins to be seen, the appetite for risk increases and purchases gain momentum. So, what does the Fear and Greed Index tell us right now?
According to Arcane Research’s The Weekly Update report, the index is currently “fear”he points to yu. In the statements made, it is stated that the Fear and Greed Index has been signaling Fear or Extreme Fear for almost a month. The last time such a prolonged state of fear was observed was at the beginning of the summer. It is also stated that as a result of the constant decline and consolidation of Bitcoin, the general sentiment is currently negative.
October addition to these, prices are related to, “During stable sales, Bitcoin tends to outperform the overall crypto market.” his words are being used.
Future Price Expectations
Fear & Greed Index In the comments made on the Newsletter, the following words are used about the future price expectations:
An important factor here is the loop support tape. We cannot ignore the fact that Bitcoin has closed 2 consecutive weeks below the market dec band. Historically, this means that we will see a longer consolidation phase before we get a real reversal in the trend. The situation here is this, as long as Bitcoin closes the week below the cycle support band, we should not expect there to be a major break in the price.
But in addition, analysts note that before the bottom levels were october, the Fear and Greed Index “extreme fear” he says he’s in his field. Therefore, the fact that the index has been in fear for a long time may also be giving us signals that there may be an increase in the near future.
If BTC Rises, Will Altcoins Be Considered Elevated As Well?
In fact, when we look at the general cycles, we first understand that the Bitcoin price and Bitcoin market dominancewe see that the price of Bitcoin has increased and then the dominance of Bitcoin has decreased with the slowdown in the price of Bitcoin, there have been increases in altcoin dominance and prices.
Because with the beginning of Bitcoin’s rise, the money in altcoins is starting to shift to the leading crypto currency. In addition, the rise in BTC is also attracting new investors to the market, and thus Bitcoin dominance is rising. Then, when the rise of BTC slows down, this time the investor is looking for new opportunities altcoinhe’s starting to look at the. This time, the money is shifting to altcoins and Bitcoin dominance is starting to decline.
Therefore, if this scenario is followed, then, “Yes, altcoins can also be considered elevated when Bitcoin rises.”
However, investors here should not forget that many elements are influential in the crypto currency market and that we are still in a state of uncertainty at the moment.