The Fear & Greed Index for Cryptocurrencies have reached March 2020 levels. Hands that are weak are shaking off.
For over a week, the price of bitcoin is already hovering near a vital rational threshold. Whereas this latest downturn may appear to be significant. Cryptocurrencies being pretty modern and unproven investments, predicting just when worse Bitcoin will go is challenging.
However, other experts are predicting $28,000 in support, followed by $20,000. BTC may collapse below $28,000, according to Peter Brandt, the senior analyst who forecast the 2018 catastrophe.
Bitcoin (BTC) is still hovering around $30,000, the low point of a year-long price range. Despite oversold circumstances on the price chart, Bitcoin’s short-term decline has been prolonged.
BTC was trading at $29,842 at the time of publishing, down 1.67 percent in the last 24 hours and 1.86 percent in the last seven days. At the time of writing, the overall crypto market capitalization has declined 1.48 percent to $1.29 trillion, according to CoinMarketCap. These two criteria may indicate that Bitcoin is reaching its bottom as it continues to trade below $30,000.
The Fear & Greed Index reached March 2020 levels
Despite yesterday’s little rally, the cryptocurrency market remains below top levels. The Cryptocurrency Fear and Greed Index plummeted to 8 yesterday, indicating alarming “extreme fear” levels in the digital industry.
The Crypto Fear and Greed Index has plummeted to its bottom point in over two years, according to cryptanalyst Ali Martinez. The current statistics reflect the same market attitude around BTC as during the March market crash, according to the expert. In March 2020, Bitcoin hit a low of $3,800 before starting its upward trend.
The current “extreme fear” may entice purchasers who have been waiting for severe oversold circumstances to buy and keep cryptocurrencies for a long time. The index has somewhat rebounded to 12 at the time of writing.
Bitcoin’s inactive accounts have been more active this week, according to on-chain analytics company Santiment, resulting in a surge in the Age Consumed. When Age Consumed surges amid price drops, it usually means that weak hands are dumping holdings.
In the medium to long term, Token Age Consumed remains a reliable indication of price direction setbacks. The number of tokens moving addresses multiplied by the time since they last moved is the Santiment metric.