Crypto sentiment exits ‘extreme fear’ after 18-day stretch
Analysis
Price Impact
MedThe crypto market sentiment is shifting from 'extreme fear' to 'fear', historically a signal for local bottoms. while this is a positive development for bitcoin, the broader market remains in 'risk-off mode', suggesting a more cautious recovery focused on btc.
Trustworthiness
HighThe analysis uses well-established indicators like the crypto fear & greed index and santiment's social media sentiment, along with insights from recognized crypto analysts.
Price Direction
BullishThe exit from 'extreme fear' and the 'generally bullish sentiment' for bitcoin, coupled with the historical tendency of 'extreme fear' to mark local bottoms, suggests a potential upward movement for btc. however, the 'risk-off mode' implies a cautious and possibly bitcoin-led recovery.
Time Effect
ShortThe sentiment shift is a recent development after an 18-day stretch. 'local bottoms' typically indicate a short-term rebound rather than a sustained long-term bull market, especially with the underlying risk aversion.
Original Article:
Article Content:
Ciaran Lyons 2 minutes ago Crypto sentiment exits ‘extreme fear’ after 18-day stretch The crypto sentiment indicator has moved up from extreme fear, and other social media indicators suggest sentiment is moving more bullish toward Bitcoin. Listen 0:00 News COINTELEGRAPH IN YOUR SOCIAL FEED After 18 days at the bottom of a widely used crypto market sentiment index, the market appears to be showing early signs of improving sentiment. The Crypto Fear & Greed Index , which measures overall crypto market sentiment, posted a “Fear” score of 28 on Saturday, the first time since Nov. 10 that it hasn’t posted an “Extreme Fear” score. The prolonged stretch near the index’s most bearish level for the majority of November, historically Bitcoin’s ( BTC ) best-performing month on average, did not go unnoticed by the broader crypto community. “Extreme Fear” readings have typically marked bottoms, says trader On Nov. 15, crypto analyst Matthew Hyland pointed out that the index was at the “most extreme fear level” of the entire cycle. “A path like this for BTC Dominance would now be max pain,” Hyland said at the time. Just days later, on Nov. 23, crypto analyst Crypto Seth said , “Extreme Fear is an understatement.” However, crypto trader Nicola Duke said that every time extreme fear has been on the index, it has marked a “local bottom” for Bitcoin. The Crypto Fear & Greed Index posted a “Fear” score of 28 on Saturday. Source: alternative.me Other indicators have since suggested that sentiment may be recovering. Crypto sentiment platform Santiment said on Wednesday that Bitcoin was showing “generally bullish sentiment” after Bitcoin climbed back to nearly $92,000, citing its social media bullish-to-bearish sentiment indicator. Crypto market still appears to be in risk-off mode Santiment said that market discussions surrounding Bitcoin on social media have focused on price volatility, and institutional activity, including ETFs and treasury purchases. Related: BTC price pauses at $92K: Can Bitcoin avoid another crash? However, crypto market participants still appear to be hesitant and in risk-off mode, according to CoinMarketCap’s Altcoin Season Index , which currently sits firmly in “Bitcoin Season” with a score of 22 out of 100 — a metric that oscillates between Altcoin and Bitcoin season readings. On Friday, Bitwise Europe's head of research, André Dragosch, said Bitcoin’s price has been misaligned due to a misreading of the broader macroeconomic outlook, particularly growing expectations of an upcoming recession. “The last time I saw such an asymmetric risk-reward was during COVID,” Dragosch said. Magazine: When privacy and AML laws conflict: Crypto projects’ impossible choice # Bitcoin # Cryptocurrencies # Altcoins # Adoption Add reaction