🚨 Bitcoin price decline triggers market panic, is it time to buy the bottom?
📉 The Fear & Greed Index, created by Alternative, combines volatility, trading volume, social media sentiment, market capitalization dominance and Google Trends to measure market sentiment with a score of 0-100. The current index is 31, indicating that the market has entered the extreme fear zone.
🤔 Fear & Greed Index, if this index exceeds 53, it means that everyone is too greedy; if it is below 47, it means that the market is too scared. The extreme cases are below 25 and above 75, representing "extreme fear" and "extreme greed" respectively.
📊 It can be clearly seen from the chart that the Fear & Greed Index was at a high level around July 29, but the value of this indicator also experienced a significant decline in the momentum of Bitcoin's price decline.
🔍On July 29, the index was 74, on the verge of "extreme greed", but by August 6, 8, and 12, the index had entered the "extreme fear" zone, with the index reaching 17, 20, and 25 respectively.
📈Although the index rebounded to 48 on the 9th of this month, the short-lived recovery did improve market sentiment. However, this growth does not seem to be sustained, and as the price of Bitcoin fell again, market sentiment fell into fear again.
💡Some people believe that historically, Bitcoin prices often go against market expectations. As a result, extreme sentiment areas often indicate the formation of market tops or bottoms. Therefore, the current extreme fear may indicate the emergence of a market bottom, although future price trends remain to be observed.
👇However, there are also different views that the current Bitcoin price fluctuates between $58,500 and $59,500, and it is still possible to drop to the $56,000 to $58,000 range in the short term. $BTC
🔄What do you think of the current market sentiment? Do you think it is a good time to buy the bottom? Or do you have any unique investment strategies or insights?