The Fear and Greed index is an indicator that monitors market fluctuations and trading volume, market dominance, social discussions and Google trends and shows whether investors are “pessimistic” or “optimistic”. Let’s interpret what this indicator, which turned red in December, heralds in Bitcoin (BTC).
In Bitcoin (BTC), the second week of December was full of “fear”!
According to the signals of the Fear and Greed index in the week that started on December 6, Bitcoin (BTC) reached the 16/100 level for the first time in almost 5 months. From these levels, the market turned to “greed” again and the index bounced a little, but fixed at this ultra-low on Saturday.
In this environment, “greed” in Bitcoin failed to rise to the surface, and it took just 28 days for the index to drop from its eight-month high of 84/100. According to analysts, since BTC could not hold above $ 50,000, fear dominated the “Fear and Greed” index and the market was dragged into sales. The last time the leading cryptocurrency was this weak was at $30,000, when it bottomed out in July after rallying in the first quarter of 2021.
What can be said about the return?
cryptocoin.com As we have reported, the total cryptocurrency market value fell below $2.5 trillion for the first time since October 15, in an environment of “fear”. While falling below $1 trillion in Bitcoin, weeks ago, on November 9-10, the total market cap was over $3 trillion. Also, Bitcoin dominance (BTC.D) is approaching a seven-month low. Despite their similarities, Ethereum is outperforming Bitcoin, and the ETH/BTC ratio has rallied impressively to a 44-month high. Now, according to analysts, this typically recurring environment may be the beginning of a process in which bottom prices are bought as an upcoming “alt season”, where large-volume altcoins dominate the market after the accumulation process.
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