The Bitcoin ‘Fear & Greed’ index recovers to 2-month high after market sales
After one of the worst quarters in their history, cryptocurrency prices may make a comeback, or at least stop falling, if the attitude of traders is any indication.
Bitcoin Fear and Greed Index hits 20 on July 8, which is the highest position it has reached in the last two months per alternative.me.
This is actually the highest meter the meter has reached since May 7, according to the multifactorial crypto market sentiment analysis.
According to a note published by Arcane Research on July 5, the indicator is moving closer to the “fear” level after spending a long time at the “extreme fear” level.
“Sentiment in the crypto market has been depressed for several months, but we see a slight improvement this week,” the platform said.
The crypto market is taking a step
The Fear and Greed Index is a measure of investor sentiment used in conventional markets. It takes into account a number of elements, including volatility, momentum and demand.
In particular, it aims to determine whether traders are overly optimistic (represented by “greed”) or bearish (“fear”), and it also takes into account a number of other criteria, such as trends in social media and Google keywords.
The index can range anywhere from 0 (representing “extreme fear”) to 100 (representing “extreme greed”).
According to Arcane Research, seven-day volatility in Bitcoin (BTC) reached its lowest level since early April, although 30-day volatility has remained high.
Still, experts said they would not be shocked to see a relatively “uneventful July after a heavy quarter in the cryptocurrency market and early summer.”
Bitcoin tests resistance at $ 22,000
As hawkish central banks and a series of high-profile cryptocurrencies shattered sentiment during the second quarter, the value of the world’s largest digital currency fell by more than 60%.
On July 6, Bitcoin rose above the $ 20,000 threshold for a brief period before falling below it. Since then, the flagship’s digital asset has climbed as high as $ 22,000 during the early hours of July 8.
WazirX added that the Bitcoin market sentiment changed in response:
“Bitcoin crossed the $ 22,000 level on the last day for the first time in 3 weeks, as the traditional as well as crypto markets reacted positively to the assurance given by the US Federal Reserve that the concern about recession has been blown out of proportion.”
As a result, Bitcoin may be on track to reach its highest weekly gain in the last nine months.
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