Against the backdrop of a sharp decline in the price of bitcoin, the Fear & Greed Index indicator of market sentiment fell to around 24, which means an extreme degree of anxiety among investors.
Data: alternative.me
The tool takes into account factors such as volatility, market dynamics, trading volumes, social media trends, data from various studies, the BTC dominance index, as well as Google Trends data.
Note that a sharp drop in the market occurred on the eve of the expiration of bitcoin options on Deribit and LedgerX exchanges, as well as CME futures.
37k bitcoin options expiring this friday
> 50% of total open interest pic.twitter.com/JGjrUuW29O
– skew (@skew_markets) September 23, 2019
According to Arcane Research , the price of the first cryptocurrency in most cases falls shortly before the execution of futures contracts. This may be due to the actions of cautious investors trying to close their positions in order to avoid excessive volatility, and to possible price manipulation.
Meanwhile, CoinDesk Markets analysts point out that the price of bitcoin closed below the 200-day moving average (MA 200), considered by many investors as a kind of border between the bull and bear markets.
#BTC EU Daily Chart Snapshot
Closed below 200-day MA yesterday
5, 10-day MAs trending south and could cap corrective rallies, if any.
RSI oversold
MACD continues to produce deeper bars in favor of bears pic.twitter.com/QVSv86DLZa
– CoinDesk Markets (@CoinDeskMarkets) September 27, 2019
The prevalence of sellers is indicated by the MA slope with periods of 5 and 10, as well as the histogram of the MACD indicator. Moreover, the fall in prices is accompanied by a significant increase in trading volumes, confirming the strength of the downward correction.
#Bitcoin daily volume has been at its highest levels in total in over a month.
Sept. 24 – Sept. 25. $ BTC pic.twitter.com/5AcyKV9zz9
– CoinDesk Markets (@CoinDeskMarkets) September 27, 2019
Recall, recently known trader Ton Weiss suggested that "digital gold" is moving to around $ 4,000 .
BlockchainJournal also previously reported that the Chicago Mercantile Exchange (CME) is planning to launch options on the basis of existing bitcoin futures early next year.
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