As Bitcoin’s price drops to $36k, the market once again descends into panic mode

As Bitcoin falls below the $36k mark, the market’s fear level rises once again.

There has been an increase in market anxiety recently as the cryptocurrency price has managed to recover back above $38k. This has led to a return to extreme anxiety feeling as the price of BTC has once again fallen. An important metric here is the “fear and greed index,” which evaluates investors’ overall sentiment.

The sentiment is expressed numerically on a scale ranging from 0 to 100 according to the metric. A reading below fifty indicates a fearful market, while a reading above it indicates an overconfident one. A value of 75 or lower indicates that investors are experiencing extreme greed or extreme fear.

The indicator has a tendency to spike at the top of a trend. Low amounts may, on the other hand, exist during the creation of the subsurface. As a result, some traders advise selling when investors are overly optimistic and buying when they are overly pessimistic. Be afraid when others are greedy and greedy when others are afraid, according to Warren Buffet.

Arcane Research has released a chart showing how the Bitcoin fear and greed index briefly climbed in value recently:

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Bitcoin’s price decline, as depicted in the graph above, has left investors nervous for some time. However, a few days ago, as the cryptocurrency began to show signs of recovery, the fearful sentiment began to emerge. The index hit a record high of 30 on Sunday, the highest reading since 2022.

The metric’s value was 26 at the time of publication of the report with the graph. As a result of Bitcoin’s recent drop below $37k, the market’s mood has once again turned fearful.

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At this time, it’s impossible to say when people’s attitudes will improve significantly. Such extreme fear values persisted for a few months during the May-July 2021 mini-bear period.

While Bitcoin’s current market value hovers around $36.7k, it has fallen 0.1 percent in the last week.

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Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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