There is now a rule among crypto investors “Extreme fear” of further losses. The so-called “fear and greed indicator” of the crypto market, which is calculated on the basis of technical market data, has fallen to a current value of 23.
Such negative sentiment is a contra-indicator according to sentiment theory, because then a lot of investors have already sold and a few purchases can already cause prices to rise.
In other words: Anything but a significant decrease would have been worrying after the Bitcoin sell-off in 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 a mood is helpful for a long-term bottoming out.
A comparatively negative mood already prevailed in May of last year, when the Bitcoin price was quoted at around $ 40,000.
In retrospect, the mood was the prelude for several months of bottoming out, which reached its lowest point in July with a brief slide below the 30,000 mark. would. In early September, the price was quoted again at $ 52,000.
However, due to the lower history, these data are less meaningful. They have only been collected since the beginning of April 2021.