Bitcoin Fear & Greed Index Falls To Extreme Fear, Is The Bottom Close?

The latest Bitcoin and crypto market crash has seen costs plunge into the pink throughout the board. Because of this, sentiment amongst crypto buyers has plunged quickly and this has induced the Concern & Greed Index to plunge into the Excessive Concern territory. This means that buyers are much less prone to put cash into the market, however it may additionally include excellent news for the market.

Concern & Greed Index Sitting At Excessive Greed

The Bitcoin Concern & Greed Index is without doubt one of the greatest indicators of telling how buyers are feeling towards the market at any time. This index makes use of a scale of 1-100, representing sentiments ranging throughout Concern, Excessive Concern, Impartial, Greed, and Excessive Greed. Every of those can present how buyers are feeling and could possibly be a inform for the place the Bitcoin worth could possibly be headed subsequent from right here.

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Normally, when the Concern & Greed Index is sitting on both excessive, it may imply that the worth is about to swing in the other way. So, for instance, the Bitcoin Concern & Greed Index is in Excessive Greed may counsel that the worth is about to fall, and vice versa.

This pattern could be optimistic for the Bitcoin worth proper now because the Concern & Greed Index has fallen into the Excessive Greed territory. As of Friday, the Concern & Greed Index had fallen as little as 22, which put it firmly within the Excessive Concern territory.

Going by the Bitcoin worth having an inclination to recuperate when the index is within the pink, it may imply that the worth is reaching a backside. An instance of that is when the Bitcoin Concern & Greed Index fell to twenty in August, earlier than the crypto market seeing a fast rebound. If that occurs right here, the Bitcoin worth could possibly be on the verge of a restoration.

Bitcoin Rebound Not Probably In September

Whereas the Concern & Greed Index sitting within the Excessive Concern territory may level in direction of a backside, the rebound could not materialize for some time. It’s because the month of September has traditionally been very bearish and expectations are that this month is not going to be totally different.

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Veteran analyst Benjamin Cowen outlined this in a put up on X (previously Twitter), revealing that this month is already on monitor with earlier September months. Thus far, the Bitcoin worth has already fallen 8.16%, and “If BTC closes the month at this worth, it could be a reasonably typical September,” the analyst explains.

The avg. return of #BTC in September is -6.3%

Thus far this month, BTC’s return is already -8.16%.

The one time within the final 5 years the place the Sep. month-to-month return was worse than this was 2019 (-13.91%)

If BTC closes the month at this worth, it could be a reasonably typical September pic.twitter.com/bZ9cRIl9OU

— Benjamin Cowen (@intocryptoverse) September 6, 2024

Nevertheless, the month of October is normally bullish, so if this pattern continues, then September is prone to finish within the pink. However then when October rolls round, costs are anticipated to choose again up.

Featured picture created with Dall.E, chart from Tradingview.com