Bitcoin falls again on Saturday

Among the crypto investors meanwhile prevails “extreme fear” of further losses. The so-called “fear and greed indicator” of the crypto market, which is calculated using technical market data, has fallen to a current value of 23.

According to sentiment theory, such a negative sentiment is a contraindicator, because then many investors have already sold and a few purchases can already ensure rising prices.

In other words: Anything but a significant drop would have been worrying after the bitcoin sell-off of the past few days and would have indicated a crash. The cyber currency has fallen by 20 percent since the end of December and is currently trading at $41,700.

The current data from the Handelsblatt survey and the survey by the analysis company AnimusX have also reached an extremely negative value, which also indicates a mood of panic among investors. Such sentiment is helpful for longer-term bottoming.

A comparatively negative mood already prevailed in May last year, when the Bitcoin price was around $40,000.

With hindsight, sentiment set the stage for a multi-month bottom formation that bottomed in July with a brief dip below 30k. would. In early September, the price was back at $52,000.

However, this data is less meaningful due to the lower history. They have only been collected since the beginning of April 2021.

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