Bitcoin's “fear and greed index” drops to record low

Against the background of another drop in the price of bitcoin, after which the majority of the leading altcoins went into the “red zone”, the cryptocurrency “fear and greed index” fell to a record low value of 5 points.

The specified index was developed by the alternative.me portal, the authors of which claim that when compiling it, they analyze such factors as volatility, market dynamics, trading volumes, social media trends, data from various studies, the BTC dominance index, as well as Google Trends data.

Based on the new indicator, it can be seen, for example, that cryptocurrency investors are currently experiencing more fear than, for example, in November and December last year, when panic reigned in the constrained “crypto” market.

It is noteworthy that such a change of mood in the market is observed very shortly after the price of the first cryptocurrency against the background of the announcement of the launch of delivery futures for bitcoin on the Bakkt platform rose close to $ 11,000.

Further growth, as investors hoped for this, however, did not happen. Moreover, over the past day, BTC has fallen below $ 9,800, trading at the time of publication just below $ 10,000.

The trader Beastlorion also wrote on Twitter that the bull trend is broken and Bitcoin is in danger of a further fall.

Hate to break it to you guys, but Bitcoin has broken its bullish trend and was then rejected from regaining that same trend. Now it is sitting on support before a potential move down. People that are still hoping for a rally to ath are likely going to be disappointed. $ BTC pic.twitter.com/1E59xknv3z

– Beastlorion (@Beastlyorion) August 21, 2019

“Those who hope to rally to new historical heights will most likely be disappointed,” he added.

At the time of writing, the market situation among the leading crypto assets is as follows:

Coin360 data

The total market capitalization is $ 260.5 billion, although on August 10 this figure was above $ 300 billion.

We add that, according to RoboForex analysts , it is important for Bitcoin to prevent falling below $ 9115, the level after which the price of the first cryptocurrency can begin to decline to $ 7200.

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