Despite Decline In Bitcoin Price, Market Remains Greedy

Keshav Verma

1 year ago

3 mins read

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Data shows that the crypto market has continued to remain greedy, despite the recent downtrend in Bitcoin’s price.

The Fear And Greed Index Says The Bitcoin Market Is Still Greedy

As per the latest weekly report from Arcane Research, the fear and greed index has been pointing towards greed since almost a month now.

The “fear and greed index” is an indicator that shows what the general sentiment is among investors in the Bitcoin market.

The metric uses a numeric scale that goes from zero to hundred, with values below fifty signaling a fear sentiment, while values above 50 implying a greedy sentiment in the market.

Values close to the extremities, that is, below 25 and above 75, indicate extreme fear and extreme greed, respectively.

Usually, fear values are seen when the Bitcoin price is showing a declining trend, while greed values are seen during upwards movement.

The extreme values imply investors are either overly bearish (in case of extreme fear) or overly bullish (for extreme greed) about the crypto’s future. Such points can therefore lead to a reversal in the price.

For this reason, some traders tend to consider periods of extreme fear as good buying points, and that of extreme greed as selling points.

Here is where the current fear and greed needle points at:

The Bitcoin market seems to be greedy at the moment | Source: The Arcane Research Weekly Update - Week 43

As the above meter shows, current value of the indicator is 73, meaning the market shares a greedy sentiment right now.

Values of last week and last month are also given below the meter, and looks like the sentiment has been greedy during those periods as well.

Now, below is a chart that shows the change in the sentiment of the Bitcoin market over the last year.

The BTC market has been greedy for almost a month | Source: The Arcane Research Weekly Update - Week 43

The indicator’s value has slightly declined recently after hitting extreme greed values last week and the reason for that is the latest dip in Bitcoin’s price.

But the indicator still points at greed nonetheless. The index is calculated by taking various components into account and volatility is one of them. Since BTC hasn’t shown that much volatility in the past week, the fear and greed values remain high despite the price of the crypto decreasing.

Here is a chart that shows this trend in Bitcoin’s price over the last five days:

BTC shows some recovery in the past couple of weeks | Source: BTCUSD on TradingVIew

Featured image from Unsplash.com, charts from TradingView.com, Arcane Research

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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