“Fear and greed”: The index recovers when the fear level for bitcoin drops
On July 8, the Bitcoin Fear and Greed Index reached 20, which is the highest position it has achieved in the previous two months.
In fact, the multivariate cryptocurrency market survey shows that this is the highest target since May 7.
The indication is on the way to the “fear” level after spending a lot of time at the “serious fear” level, according to a report published by Arcane Research on 5 July.
If trading attitudes are any indicator, cryptocurrency values may recover from one of their worst quarters ever, or at least stop falling.
Fear and Greed Index
In traditional markets, a measure of investor glow is called the fear and greed index. It considers a number of factors, such as volatility, momentum and demand.
It specifically seeks to identify whether traders are too bullish (represented by “fear”) or bearish (represented by “greed”), and it also considers a number of other factors, including social media trends and Google search phrases.
Although 30-day volatility has remained high, Arcane Research reports that seven-day volatility in Bitcoin (BTC) has fallen to its lowest level since early April.
A relatively “uneventful July after a busy quarter in the bitcoin market and the beginning of the summer,” analysts added, would not surprise them.
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The mood in the Bitcoin market changed
The value of the largest digital asset in the world fell by more than 60% during the second quarter as hawkish central banks and a number of high-profile crypto-explosions destroyed confidence.
On July 6, Bitcoin briefly crossed the $ 20,000 barrier before falling below it.
But since then, the primary digital resource has increased, reaching a peak of $ 22,000 on July 8 in the early trading hours.
In response, WazirX noted that the mood in the Bitcoin market changed:
Bitcoin has just crossed the $ 22,000 threshold for the first time in three weeks as a result of the traditional markets and cryptocurrency markets reacting positively to the United States
The Federal Reserve’s guarantee that concerns about a recession are exaggerated.
Thus, Bitcoin may be on track to record its largest weekly increase in the last nine months.
Steve Anderson is an Australian crypto enthusiast. He has been a specialist in management and trade for over 5 years. Steve has worked as a crypto trader, he loves to learn about decentralization, understand the true potential of the blockchain.
