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Two Months Of Extreme Fear Leaves Crypto In Panic, Bitcoin At $20K

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Bitcoin

Data shows the crypto market has been observing extreme fear for two months now, leaving investors in panic as Bitcoin has crashed to $20k.

Crypto Fear And Greed Index Is Still Pointing To “Extreme Fear”

As per the latest weekly report from Arcane Research, the cryptocurrency market has now been facing extreme fear for two months now, the longest streak in history.

The “fear and greed index” is an indicator that measures the general sentiment among investors in the crypto market.

The metric uses a numeric scale that runs from zero to hundred for representing this sentiment. All values greater than fifty imply that investors are greedy at the moment, while those below the threshold signify a fearful market.

Edge values of above 75 and below 25 mean holder sentiments of “extreme greed” and “extreme fear,” respectively.

Now, here is a chart that shows the trend in the crypto fear and greed index over the past year:

Looks like the value of the indicator has been very low recently | Source: Arcane Research's The Weekly Update - Week 24, 2022

As you can see in the above graph, the crypto fear and greed index has a value of 9 right now, suggesting that the market is extremely fearful.

Such low sentiment values have now persisted for two months now, making this the longest extreme fear run the market has ever seen.

Related Reading | Crypto Market Crashes Further: Bitcoin (BTC) and Ethereum (ETH) Value Slumps

These indicator values have stayed while the entire crypto sector has gone through a crash and a large part of the investors have gone into the red.

Historically, streaks with extreme fear have been when coins like Bitcoin have tended to form bottoms (and similarly, tops have occurred during extreme greed).

Because of this, some analysts believe an extremely fearful market can provide fresh buying opportunities for cryptos.

Related Reading | Bitcoin “Diamond Hands” Start To Break As 1yr+ Supply Ramps Up Selling

The trading technique that follows this idea is called “contrarian investing.” This famous quote from Warren Buffet encapsulates the philosophy: “be fearful when others are greedy, and greedy when others are fearful.”

If the historical trend is anything to go by, the current long run of extreme fear may be when Bitcoin and other coins observe bottoms. And if so, now may be when a contrarian investor will believe to be an ideal buying point.

Bitcoin Price

At the time of writing, BTC’s price floats around $20.4k, down 1% in the last seven days. Over the past month, the crypto has lost 30% in value.

The below chart shows the trend in the price of the coin over the last five days.

Bitcoin Price Chart

The value of Bitcoin seems to have dropped down over the past day | Source: BTCUSD on TradingView
Featured image from Thought Catalog on Unsplash.com, charts from TradingView.com, Arcane Research
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Decentraland Momentum Pushes MANA Into Consolidation Phase’s Higher Rung

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Decentraland

Decentraland (MANA) price has been steady in the range of $0.75 to $1.05 as it hovers with intensified upward movement.

  • MANA price on the daily chart is trying to hold the consolidation of the upper trendline from the lows seen on 2021
  • Decentraland price has managed to hover above 20 EMA and 50 EMA and warming up for the 100 and 200 DMA
  • MANA price has spiked by 0.13% and currently trading at $1.05

Decentraland (MANA) has been sitting within the same region since June 2022. While MANA is looking for ways to escape the consolidation phase, the bulls are unable to maximize their gains. On the other hand, bulls are headstrong to make a breach from the horizontal range.

Meanwhile, MANA’s price has been steady in the range of $0.75 to $1.05 as it hovers with intensified upward movement into the upper lane of the consolidation phase. In order for the token to soar above the restricted area, the bulls should firmly hold on to their posts at the trendline.

Decentraland (MANA) Price Surges 0.13%

According to CoinMarketCap, the MANA price has surged by 0.13% and is trading at $1.05 as of this writing.

Decentraland’s price has managed to jump from $1.037 to $1.05 in the past few hours which also registered an increase in the market value of 4.90%. More so, the intraday trading session also logged a spike of 2.76% in terms of the trading volume.

The above figures imply that investors are trying to help out MANA to exit from being pinned into the consolidation phase.

MANA Trying To Breeze Past Consolidation Phase

Judging by the daily price chart, it looks like MANA price is trying to breach the consolidation phase. In order to do so, MANA bulls must put their heads together to successfully bolster the breach of the token. On the other hand, due to the increase in trading volume, the bears can easily interfere and stop the bulls at any time.

Now, for MANA to cleverly breeze past the horizontal range, they must be up to speed. The good news is that technical indicators show MANA’s heightened momentum. The token’s RSI is at 59 and is moving near the overbought levels.

This popular metaverse project has experienced extreme volatility like other digital assets, especially in the gush of the crypto winter. More so, MANA price has been bearish since May 2022 exhibiting fluctuations or highs and lows and has not shown a steady gait. It had its ATH of $5.90 which is 81.66% lower compared to its current value.

MANA total market cap at $1.85 billion on the daily chart | Source: TradingView.com

Featured image from Voonze, chart from TradingView.com
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Is Ethereum Being Rejected At $2k USD Price Level?

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Is Ethereum Being Rejected At 2K Usd Price Level?